The Ultimate Business VoIP Phone System Buyer's Guide

There is a ton of information available on the World Wide Web regarding VoIP phone systems but it can often be full of jargon and difficult to understand for the layperson. Since choosing the right Business VoIP provider, plan and equipment can be difficult if you’re not knowledgeable on the subject, we’ve researched and written a fully comprehensive guide.

The Ultimate Business VoIP Phone System Buyer’s Guide

A Business VoIP phone system is a communication phone service that delivers call or data packets over the internet. VoIP technology uses a digital signal to convert voice calls, allowing anyone to make calls directly from a VoIP phone, laptop or desktop or any other device that is data-driven.

It is essential to know the specific technical terms that are used to describe a VoIP phone system and will be used in this guide. When we introduce a new technical term in this buyer’s guide, we’ll also provide a brief definition marked with an asterisk.

To start, the two most commonly used technical terms that describe a VoIP phone system are ‘IP PBX,’ and ‘VoIP PBX.’ These two terms are often confused, but have very different meanings.

So, let’s break down the terminology:

  • IP = Internet Protocol. A method of transporting call or data packets across your LAN (Local Area Network) or a WAN (Wide Area Network).
  • VoIP = Voice over Internet Protocol. A phone system that manages your connection to your telephone service provider and directs your call control functionality through internet protocol technology.
  • PBX = Private Branch Exchange. A telecommunications system that manages your telephone and fax machine’s call control functionality while simultaneously maintaining your connection to the PSTN (Publicly Switched Telephone Network).
  • PSTN = Publicly Switched Telephone Network. The traditional circuit-switched telephone network, which began in the late 1880s, that uses copper wires to carry analog voice data.

Therefore, ‘IP PBX’ stands for ‘Internet Protocol + Private Branch Exchange’ and ‘VoIP PBX’ stands for ‘Voice over Internet Protocol + Private Branch Exchange.’

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