What Is a Hosted Office Phone System?


Quick Answer

A hosted office phone system makes office telecommunications available remotely over a public telephone network or over the Internet. Cheaper and more easily customizable, a hosted PBX, or private branch exchange, allows employees to work off-site while connected to the office phone system.

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Full Answer

A hosted PBX offers the same features as a traditional PBX but is easier to customize. Another advantage of hosted systems for companies – especially small- and medium-business owners – is that they save money since they don’t have to buy and maintain PBX and phone equipment and software. Hosted systems can also lower personnel costs because most hosted systems are operated and maintained by a contracted Voice over Internet Protocol provider either on site or from the provider’s offices.

A hosted PBX also makes it possible for a business to use only one phone number even when the company has offices in more than one location. Moreover, should a company decide not to have brick-and-mortar business offices, its workers can work remotely and still have all the advantages of a PBX using only their phones. Further, use of a hosted PBX means that employees’ work extensions can ring in multiple locations at the same time via POTS (plain old telephone service), ISDN (integrated services digital network), mobile phones and VoIP.

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