Published 2025-01-28 by TechNet Team
When you sign up for business phone service from Comcast, AT&T, Spectrum, or similar providers, there's often a detail buried in the contract: you're leasing the equipment, not buying it.
This might seem convenient upfront - no big purchase, just a small monthly fee. But over time, it becomes a trap that keeps you paying forever.
How the Leasing Model Works
- You sign a 2-3 year contract for phone service.
- They provide "free" or discounted phones - but you're actually leasing them for $5-$15 per phone per month.
- The phones are locked to their service - you can't use them with another provider.
- When the contract ends, you can renew (keep paying) or return the equipment. You never own it.
- If you want to leave, you face early termination fees, and you must return all equipment.
The Real Cost of Leasing
10 phones leased at $7.50/month each:
| Timeframe | Leasing Cost | What You Own |
|---|---|---|
| Year 1 | $900 | Nothing |
| Year 3 | $2,700 | Nothing |
| Year 5 | $4,500 | Nothing |
| Year 10 | $9,000 | Nothing |
After 10 years, you've paid $9,000 and own nothing.
The Lock-In Effect
- Switching costs are high - You return all equipment and start over.
- You can't take your phones - They're locked to the provider's system.
- Contract renewals are automatic - Miss the window and you're locked in again.
- Price increases are common - Introductory rates expire, but you're still under contract.
The Alternative: Own Your Equipment
With cloud VoIP, you buy your phones outright:
- You own the equipment forever - no monthly fees
- Standard SIP phones work with any provider - no lock-in
- Phones last 7-10+ years
- No contracts required - switch anytime
Lease vs. Buy: 5-Year Comparison
| Lease 10 phones @ $7.50/mo | $4,500 | Own nothing |
| Buy 10 Yealink T33G phones | $890 (one-time) | Own 10 phones |
Calculate Your Savings
Use our VoIP Cost Calculator to see how much you could save by owning your equipment.