How Does an IP-Based Business Telephone System Work?

Business Phone Systems

Business Telephone System

With technological improvements came newer versions of business phone systems. For one, the improvements to legacy private branch exchange telephone systems caused the arrival of IP-based ones. The word IP is an acronym of the internet protocol. This system makes use of the internet for efficient and effective communication. Introduced in the 1990’s period, IP-based telephone systems are still very much in use.

How It Works

An IP PBX utilizes IP networks and VoIP technology to make phone calls. The IP technology makes use of packets of digitalized data and sends these over the internet. A big difference between legacy PBX and IP-based PBX systems is that rather than a switchboard, the latter makes use of a central server.

The data transmission process in IP-based systems is referred to as “packetization” or packet switching. First, an analog signal is turned into one that is digital with an IP phone or analog telephone adapter. The data is then converted into individual packets, transferred over the internet and reconverted into analog signals.

For this, encoding and decoding methods are used. The computer then records and compresses the audio into samples, which are collected in big groups and put into packets. Finally, the packets are transferred over the telecommunications network.

IP phone systems are mainly made up of a VoIP PBX and IP phones, which connect to a provider of VoIP service through a LAN.

The Pros of an IP-Based System

Wireless: When it comes to a legacy PBX phone system, every single desk in the workplace would have physical wires connected to it for each phone line. This makes your workplace look cluttered and unorganized, however clean or neat you maintained it. With an IP-based office phone system, on the other hand, there is virtually no need for this kind of a mess. It works over the internet, so wires are not needed.

More Affordable: The introduction of IP PBX systems made business communication much cheaper compared to previous technology. With one such phone system, you can make internal calls for free, and make international and external calls for almost no charge. Except for the miscellaneous expenses associated with all standard calls, business phone calls technically come free with this service.

Multiple Calls

As said, in a legacy system, every one desk required its own phone and number. This is not so with IP PBX systems. With the IP telephone, it is possible to make many calls at the same time, each one with another user. Extra wires, lines or equipment are not needed for additional telephone lines.