A business phone system is a calling network that allows internal and external communication, and are designed to meet the complex needs of businesses. There are four main types of phone systems. These phone systems are differentiated by the technology used, cost and service provider.
Multi-line phone system
This is a basic system that can handle several lines running through one unit, allowing operators to answer each number individually. This is ideal for small businesses.
VoIP phone system
Instead of using traditional phone lines, this system uses your Internet connection. This allows you to have unique phone numbers, handle toll-free numbers and route calls to certain employees.
PBX phone system
PBX stands for private branch exchange. This system is a private network used exclusively by the company and allows centralized routing of incoming and outgoing phone calls through the company’s phone lines.
Cloud phone system
Call routing and signal processing are done remotely for a small monthly fee, with the infrastructure kept offsite.
These systems are ideal for smaller businesses with 1 to 250 users. For a mid-market business, the ideal phone systems are VoIP systems and PBX systems. For that reason, let’s talk about VoIP systems and PBX systems in more detail.
In a VoIP (voice over internet protocol) phone system, the voice and data communication equipment are hosted by a third party at a remote location. The VoIP system relies on an Internet connection with the burden of maintenance placed on the service provider.
Costs of VoIP Phone Systems
VoIP phone systems typically involve one-time setup fees. These setup fees cost approximately $5,700. However, once the system has been set up, an ongoing monthly subscription fee of approximately $600 must be paid to the service provider. This covers the use of the system and maintenance cost. These phone systems require a good Internet connection for quality calls. The price of these systems depends on the Internet service speed and the service provider.
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A PBX (private branch exchange) phone system consists of a private network on-site. This phone system has a central unit into which all phone lines within the organization are tied, and the cost is generally lower than a VoIP system.
Costs of PBX Phone Systems
The setup fees for a PBX phone system cost around $2,500, while the installation fee is around $1,700. The monthly fee is around $600, which covers both the Internet and phone service costs.