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What is a Telephone system and what types of systems do you get?
Steven Jonker • 7 October 2021

When referring to a business telephone system, there is more going on behind the scenes than one would think. These telephone systems go beyond being ‘just phones’ and are not as simply described as ‘that box mounted on your office wall’. 


Let’s have a look at how these telephone systems work to give you a better idea of what type of system would work best for you and your business.


What is a Telephone System?

Put simply, a telephone system is the interconnection of several telephones (typically used in business environments). These systems allow for a process flow that includes the sending and receiving of real time voice transactions.


The technology behind these systems ranges from traditional KTS (Key Telephone systems) to the more advanced PBX (Private Branch Exchanges).


Depending on how basic or advanced the phone system is, it can allow for a variety of features, including; auto attendants, call transferring, putting calls on hold and call logging.


Types of Phone Systems:

*It is worth noting that, though there may have previously been notable differences between the two, nowadays - the terms ‘PBX’ and ‘PABX’ are often used synonymously.


There are three main types of modern telephone systems;

  • On-Premise PABX 
  • VoIP PABX
  • Hosted/Virtual PABX


1. On-Premise PABX

 

How do On-Premise Phone Systems Work?


On-Premise phone systems require the servers used to manage outgoing and incoming calls to be maintained on-site, by the business itself. These systems require initial upfront costs (of installations and maintenance) as well as internal IT staffing capable of their maintenance.

 

Though these phone systems have been around for a long time (granted, not as long as old school copper-wire systems) they are becoming less and less common, as businesses move towards more advanced, digital systems.

 

2. VoIP PABX

 

How do VoIP PBX Phone Systems Work?


Also known as IP PBX, VoIP represents a newer version of PBX by making use of IP (Internet Protocol) to carry calls, instead of traditional phone lines. With VoIP phone systems, voice is converted into data that is transmitted over the Internet, It is then converted back to voice for the receiver. This allows for higher quality voice calls and can be substantially cheaper than more traditional alternatives.


For more information on VoIP, visit our quick read article - ‘What is VoIP’.

 

3. Hosted PABX (VoIP Phone System)

Hosted VoIP (also known as Cloud or Virtual PBX) is a type of IP (Internet Protocol) phone system. 


Hosted telephone systems are by far the most flexible and modern types of telephone systems on the market. Eliminating the need for that ‘box on the wall’ model and replacing it with ‘the cloud’ which serves as the telephone system.


How do Hosted PBX Phone Systems Work?


These virtual systems make use of an internet connection to a VoIP service provider. 

Everything is taken care of by the service provider. (including the routing of all incoming and outgoing calls) and no additional on-site equipment is needed.


Virtual phone systems have a wide array of benefits, from lower costs, higher quality audio and video calls to reduced maintenance and implementation costs.


To read more about the benefits of a hosted system, click here.


Common Telephone System Accessories:

Business telephone systems are not limited to just the actual phones and networks they make use of. Today, we have a vast range of accessories that businesses are able to use in order to optimise their telecommunications even more. 


Some of the more common accessories include (and are not limited to):

  • Handsets (corded or cordless)
  • Headsets (cordless or over the head)
  • Reception Phones (More buttons and functionality than a normal handset)
  • Networking Switches
  • Routers
  • Server Cabinets


Valuable Phone System Features:


Modern telephone systems come with a wide range of built in as well as add-on features that have been designed to help businesses communicate more effectively with clients and prospects as well as optimise their overall workflow. 


We have listed a few of these important features below.

(For a detailed list on PBX Features click here)


  • Voicemail Options
  • Find me/Follow me
  • Automated Attendants
  • Call Recording
  • Call Log Reports
  • “On Hold” Messages and Music
  • Call Transfers
  • Call Forwarding
  • Conference Calling


In Conclusion:

Having a reliable telephone system that suits your business’s needs is imperative. A phone system that allows you clear and effortless communication with customers and prospects, ensures that your daily operations run smoothly and most importantly saves you on costs in the long run. 


For assistance with choosing the right phone system for your business and budget needs, contact our team at X-Corp Business Solutions today.

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