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How Does Hosted PBX VoIP Work?

April 19, 2012 | Comments: 0 | Views: 106

A private branch exchange (PBX) is a private telephone system that switches calls between user extensions on local lines while connecting all of these to the outside public switched telephone network (PSTN). The functions provided by this system include call routing, call forwarding, conference calling, faxing, voicemail, automated greetings, and touch tone menus.

Traditionally, a PBX telecommunication system would be owned and operated by the company using it, and would require such equipment as a switchboard, a network of phone lines, a computer to manage the switching of calls, and telephone trunk lines.

Even as an increasing number of companies are switching to voice over internet protocol (VoIP) technology from traditional phone lines, they still need to employ the services provided by a PBX system because it's highly likely that most of their customers will still be using traditional phone systems to contact them. For small and medium businesses, this may pose something of a problem due to the high cost of setting the system up, and the limited mobility and accessibility it affords.

Hosted PBX VoIP services offer companies the opportunity to take advantage of all the functions of a PBX system at a fraction of the cost of having such a system set up at their premises.

So how does hosted PBX VoIP work?

To put it simply, hosted PBX VoIP provides the services of a PBX feature set using hardware that is at a different location from its users. This is what the word "hosted" in the name refers to: the PBX itself and the related equipment being offsite at the provider's location, with its users connecting to the provider via broadband internet to access the service.

In this system, the service provider is responsible for operating and maintaining the PBX system and routing all incoming and outgoing calls, thus freeing the companies employing it from the expense and responsibility of setting up the equipment and training in-house personnel to use it. The upfront cost of a hosted PBX VoIP system will at most include a service fee, the cost of the IP-enabled devices to be used, and a router.

The fact that the hosted PBX system is accessed by VoIP adds a lot of advantages to this service. Generally, VoIP systems transmit higher quality data than that sent over phone lines. In terms of mobility, since all a VoIP device needs to connect to the system is an internet connection, the hosted PBX VoIP can be accessed from almost anywhere, without the constraint of being tied to a wired-in telephone. This is especially beneficial for businesses that require mobility, or those that have several small offices set up in different locations. And scaling up or scaling down a hosted PBX VoIP system is as easy as connecting or disconnecting a mobile device from the service.

Many businesses are taking advantage of the top-of-the-line communications services provided by these systems at low cost. Perhaps it's time to find out how does PBX VoIP works for your company.

Jeff G Foster is a freelance writer for VoIPDeals.co.za and loves writing about VoIP products and information.

Source: EzineArticles
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