Whilst having the identical functionality of a traditional PBX, Hosted Telephone systems avoid the need for customers to make a capital investment in a Telephone system. Instead, the system equipment is owned by the Service Provider (SP) and is located either in the local Telephone Exchange or in an Internet Service Provider’s premises or Datacentre. Customers rent their telephone service (and can also rent the Telephone instrument itself in some cases).
Essentially, there are two types of Hosted Telephone system, traditional CENTREX based systems or Voice over IP (VoIP) Internet based systems.
In a hosted VoIP system, each VoIP extension (known as a VoIP subscriber) has its own virtual line which is delivered via Broadband or another Internet access product. The line possesses a unique telephone number. The switching equipment is located in the ISP’s Datacentre. Extension to extension calls are free and there is no contention for lines. Calls to any other VoIP number (anywhere in the world) are also free.
Hosted systems are ideal for those customers who want to pay for their services on a ‘’pay as you go’’ basis . The product is very scalable in that the number of subscribers can be readily increased/decreased as the business changes (subject to contractual arrangements).
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