BaronTEL Canada

BaronTEL operates its own Canadian VoIP infrastructure and provides business phone services nationwide.

Hosted VoIP replaces traditional phone lines with a cloud-based business phone system that supports remote teams, call routing, auto attendants, voicemail-to-email, and number porting across Canada.

Ready to upgrade? Call us now: 1.888.241.8647

Free consultation & custom quote

Hosted PBX vs Traditional Phone Systems in Canada (2025 Guide)

Understand the real differences in cost, features, and flexibility for Canadian businesses

This guide explains how modern hosted PBX compares to traditional phone systems, and where BaronTEL's Essential, Professional, and Enterprise plans fit in.

Hosted PBX or Traditional Phone System – Which Should You Choose?

A straightforward comparison for Canadian offices, clinics, professional firms, retail, and call centres

For many Canadian businesses, the decision comes down to two main options:

Below, we compare both approaches in terms of cost, features, reliability, mobility, and maintenance, and show how BaronTEL's Essential, Professional, and Enterprise plans can replace legacy systems with predictable pricing and full support.

What Is a Hosted PBX vs a Traditional PBX?

Plain-language definitions before we dive into the numbers

What Is a Hosted PBX?

Hosted PBX (cloud phone system) means:

  • The phone system runs in secure data centres, not in a PBX box in your office.
  • Your phones and softphones connect over your internet connection.
  • BaronTEL manages the platform, updates, and reliability.
  • You focus on your business – we look after the phone system.

With BaronTEL, hosted PBX is delivered through our Essential, Professional, and Enterprise plans, each with a clear feature set and per-user pricing.

What Is a Traditional Phone System?

Traditional PBX (legacy phone system) means:

  • A physical PBX box installed in your office or equipment room.
  • Proprietary hardware, cards, and on-site wiring.
  • Maintenance contracts and technician visits for changes.
  • Higher costs for advanced features like queues and recording.

This model made sense years ago. In 2025, most Canadian businesses see better value and flexibility with hosted PBX.

Real Cost Comparison: Hosted PBX vs Traditional PBX

Actual costs for Canadian businesses based on 2025 market data

10 Users

BaronTEL Hosted PBX:

Essential: $16.95 × 10 = $169.50/month

Professional: $24.95 × 10 = $249.50/month

Enterprise: $32.95 × 10 = $329.50/month

✓ No upfront costs
✓ Includes maintenance & support
✓ Month-to-month or term options


Traditional PBX:

Upfront Hardware: $10,000-$13,000
(PBX cabinet + 10 phones + installation)

Monthly Costs: $620-$1,050/month
(SIP trunks $120-$300 + maintenance $500-$750)

First Year Total: $17,440-$25,600

20 Users

BaronTEL Hosted PBX:

Essential: $16.95 × 20 = $339/month

Professional: $24.95 × 20 = $499/month

Enterprise: $32.95 × 20 = $659/month

✓ Add users instantly
✓ Remote work ready
✓ Canadian support included


Traditional PBX:

Upfront Hardware: $14,500
($6,500 PBX + $3,000 phones + $4,000 licenses + $1,000 setup)

Monthly Costs: $1,400/month
(Lines, maintenance, IT support)

Two-Year Total: ~$48,000

vs. BaronTEL Professional: $11,976

50 Users

BaronTEL Hosted PBX:

Essential: $16.95 × 50 = $847.50/month

Professional: $24.95 × 50 = $1,247.50/month

Enterprise: $32.95 × 50 = $1,647.50/month

✓ Enterprise features
✓ Scalable instantly
✓ Multi-location support


Traditional PBX:

Upfront Hardware: $25,000-$50,000
(Enterprise PBX system at this scale)

Monthly Costs: $2,500-$4,000/month
(Lines, maintenance, dedicated IT staff)

First Year Total: $55,000-$98,000

vs. BaronTEL Enterprise: $19,770

BaronTEL offers both month-to-month and 3-year term pricing.

Contact us for volume discounts on larger deployments and a custom migration assessment from your current system.

View Pricing & Order Call 1-888-241-8647

Feature Comparison: Hosted PBX vs Traditional Phone System

What you actually get with each approach

Feature Hosted PBX (BaronTEL) Traditional PBX
Core voice calling Included with all tiers Included
Unlimited Canada/USA calling bundles Available on all plans Varies – often more expensive
Auto attendants (IVR) Essential: 1 IVR
Professional & Enterprise: Unlimited IVRs
Often extra or complex to change
Music on hold Professional & Enterprise Usually add-on or custom work
Call recording Professional & Enterprise Often requires extra hardware/licences
Call queues & ring groups Essential: none
Professional: 1–2 queues & ring groups
Enterprise: multiple advanced queues
Available, but typically expensive and harder to manage
SMS/text messaging Available on Professional & Enterprise plans Generally not offered
Remote work / softphones Desk phones & softphones from anywhere Office-bound – remote options are limited
System maintenance BaronTEL handles the system, including phones when using our supported 5-port router Customer or 3rd-party vendor must maintain PBX hardware & software
Scalability Simply add more users and features as needed Often requires hardware upgrades or new systems
Upfront investment $0 – Start immediately $10,000-$50,000+ before first call

How BaronTEL Plans Fit Into Hosted PBX

Three service tiers designed for real-world Canadian businesses

Essential Plan

Ideal for small offices needing simple, reliable phone service. Includes unlimited Canada/USA calling, voicemail-to-email, softphone support, and 1 auto attendant (IVR). Excludes music on hold, call recording, call queues, and ring groups.

Professional Plan

Best for growing businesses requiring a complete phone system. Includes everything in Essential plus unlimited auto attendants, music on hold, ring groups, 1–2 call queues, call recording, conferencing, paging, and SMS/text messaging.

Enterprise Plan

Built for call centres and complex operations. Includes everything in Professional plus multiple advanced call queues, queue statistics, real-time monitoring/wallboard, detailed call history and logs, and enhanced SMS/text messaging capabilities.

Who Manages the Phone System?

With a traditional PBX, your team or a 3rd-party vendor is responsible for hardware, firmware, backups, and repairs. With BaronTEL Hosted PBX, you do not manage the system. Our team looks after the hosted platform, updates, and reliability. When your office uses our supported 5-port router and recommended equipment, BaronTEL also handles phone maintenance and support, so you enjoy a true managed service instead of another piece of equipment to worry about.

Hosted PBX vs Traditional PBX – Frequently Asked Questions

What is the main difference between a hosted PBX and a traditional phone system?

With a traditional PBX, you buy, install, and maintain hardware in your office. With a hosted PBX from BaronTEL, the phone system runs in our Canadian data centres and you simply plug in phones or use apps. We handle upgrades, maintenance and reliability for you.

Is a hosted PBX more reliable than a traditional on-site system?

Yes, in most cases. A single on-site PBX can go down with power failures, hardware problems or office Internet issues. BaronTEL hosts your PBX on redundant servers with multiple carriers and power sources. If a device in your office fails, your numbers can still ring softphones, mobiles or other locations.

How does pricing work compared to buying a traditional PBX?

A traditional PBX usually requires a large upfront purchase ($10,000-$50,000+) plus yearly maintenance contracts. With BaronTEL hosted PBX, you pay a simple per-user monthly fee with maintenance, upgrades and Canadian support included. No surprise "service call" invoices. We offer both month-to-month and term pricing options.

Do we still need phones in the office with a hosted PBX?

You can use desk phones, cordless phones, or just softphones and mobile apps. Hosted PBX gives you the flexibility to support office staff, hybrid workers and fully remote teams while keeping one professional business number and call flow.

Who handles maintenance and changes with BaronTEL hosted PBX?

BaronTEL does. Your team does not touch the PBX. Our engineers handle all maintenance, firmware updates and configuration changes. When you have our managed 5-port router at the site, we also take care of phone maintenance and changes for you.

Ready to Move from Traditional Phones to Hosted PBX?

We'll review your current phone setup, estimate savings, and recommend the right BaronTEL plan for your business.

Call us today: Toronto 416.477.5411   |   Toll-Free 888.241.8647