£1.5 billion could be saved by UK businesses if they switched to VoIP technology.

UK businesses could save £1.2 billion a year by switching to internet-based telephone systems, according to research from Britain’s first independent web-based phone company.

Cloud Net, the company behind the research, also claims that thousands of jobs would also be created as a reduction in technological costs pave the way for job security.

A detailed analysis of the UK’s 10 million traditional fixed line users. According to the study, the costs currently amount to around £2.5bn in line rent and calls, from a variety of resellers, plus the mounting costs of equipment rental.

Cloud Net, says its new third generation Voice over Internet Protocol (VoIP) offers switchboards to subscribers and low-cost line rental, and is being hailed as a major breakthrough in telecoms.

Subscribers pay around £6.50 a month for switchboard phones which operate through their broadband system and reportedly provide “crystal clear” sounds.

Cloud Net Chairman, David Hill, said: “There is no reason whatsoever for companies now not to use internet-based telephones as the quality is far superior to anything else on the market and offers all the services of traditional land-lines without the hassle.

“Our research has shown that businesses in Britain could save millions of pounds by switching to the VoIP system. There are ten million users across the UK and the savings would be enormous, giving industry and commerce a huge economic boost.”

Cloud Net launched its new service in September and has plans to cover the whole of the UK within two years.