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Hosted PBX Service Providers | Hosted PBX System Price Quotes

Hosted PBX Systems (Private Branch eXchange) are IP phone systems that companies can lease or rent on an annual or monthly basis, thus eliminating the need to purchase expensive equipment. Most, if not all, of the equipment is hosted by the service provider, with communications routed through said provider to and from your company’s sites. Some of the benefits of PBX systems include predicting costs of operation and ease of installation and configuration, compared to other systems.  Hosted PBX systems can also be more cost effective to operate, but this advantage can lessen with the increase of users and the amount of usage the system gets.

PBX is the switching system that manages all calls between local or internal users. It shares several lines that all connect to the public phone system and transmits them out on an as needed basis to local users. Other features exist as well that allows users to answer incoming calls, connect to answering services and send to correct extensions.

In traditional phone setups in a business environment the PBX was usually a large piece of equipment that was located in the company’s physical location, and was normally stored in a storage cupboard of some kind. Calls came in from the external phone system and there were lines that ran to all of the business’ phone extensions. A hosted PBX system extends this concept, with the service provider storing the PBX unit in a remote location. The service provider is responsible for maintaining the unit and the business just needs to have phones, which are also usually provided by the service provider.

- How it works

These systems run on IP networks, which essentially mean that they use the same wiring and circuitry as the LAN or data network. The information gets passed back and forth using the same mechanisms of an office network or even the internet itself. There are huge advantages to this kind of setup. The main one is that your business only requires one set of wiring for all of your communication needs. Other advantages include that fact that voice and data networks can communicate with one another easier, and you likely only need to hire one person to maintain and administer the data and voice networks. 

When you opt for a hosted PBX system, you will likely be provided with a special switch or router that attaches to the network; it is then connected to external systems. This router or switch directly communicates with the hosting or service provider that you have chosen. This connection could be made over the public internet (using secure protocols) or it could be connected using a dedicated line that simulates the workings of the internet. In the case of the dedicated connection, it is considered more private and provides better bandwidth, service and security levels.

When a call is initiated, the phone connects to the IP network, and then gets switched to the remote hosted service, where it establishes the number that is being called and creates the connection. This remote service can also initiate other connections, and in general provide improved and enhanced services.

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