Telephone systems are essential for any business or organisation to communicate with customers, suppliers, and colleagues. With advances in technology, there are now several types of telephone systems available, each offering different features and benefits. 

Whether you're running a small business or managing a large corporation, it's important to understand the various options. Below, we will cover the main types of telephone systems, including traditional setups and modern internet-based solutions like VOIP.

1. Traditional Landline Systems

Traditional landline systems, also known as Public Switched Telephone Networks (PSTN), have been around for decades. These systems use copper wires to transmit voice calls and are provided by telecom companies. Though they are reliable, their use has been declining due to newer, more flexible options.

Landline systems tend to be used by older businesses or organisations that are in areas where internet connectivity is limited. They usually require physical installation and maintenance of on-site equipment such as Private Branch Exchange (PBX) systems to handle call routing internally. 

However, these systems can be expensive to maintain and may lack modern features like call forwarding, voicemail-to-email, or the ability to handle video calls.

2. PBX Systems

Private Branch Exchange (PBX) systems are commonly used by businesses to manage multiple phone lines internally. These systems allow companies to run an internal phone network, which can be connected to external lines. Calls between internal users don’t require an external line, saving costs on long-distance and internal communications.

PBX systems come in two main types: traditional (on-premise) and hosted (cloud-based).

On-Premise PBX

On-premise PBX is an older style of PBX, where the hardware is kept on-site, and the system is controlled directly by the business. These systems require upfront investment in hardware and ongoing maintenance, which can be costly, especially for smaller organisations. However, they offer complete control over the phone system.

Hosted (Cloud) PBX

Hosted PBX is the modern version of PBX, where the phone system is hosted off-site by a provider. It works through the internet and removes the need for businesses to maintain hardware on their premises. 

Hosted PBX systems are more affordable for small to medium-sized businesses, as they are typically subscription-based. The setup is easy, and maintenance is handled by the provider, offering flexibility and scalability.

3. VOIP (Voice over Internet Protocol)

VOIP (Voice over Internet Protocol) systems are growing in popularity due to their flexibility, cost-effectiveness, and modern features. Instead of relying on traditional phone lines, VOIP systems use the internet to transmit voice data.

One of the biggest benefits of VOIP is that it can work on various devices, including computers, smartphones, and traditional phones with the help of adaptors. This makes it an ideal solution for remote working, as employees can make and receive calls from virtually anywhere with an internet connection.

VOIP systems offer features that traditional systems cannot, such as:

• Video calling
• Instant messaging integration
• Voicemail-to-email services
• Call forwarding
• Conference calls

VOIP is also cheaper for international and long-distance calls, as they are routed through the internet rather than through traditional telephone networks.

4. Hybrid Telephone Systems

Hybrid systems combine elements of traditional landline systems and VOIP. These are perfect for businesses that want to maintain some of their existing phone infrastructure while moving towards more internet-based communications. For example, a business might keep its landline system but add VOIP functionality for remote workers or to reduce international call costs.

Hybrid systems provide a flexible transition between old and new technologies, allowing organisations to gradually shift towards VOIP without a complete overhaul of their current system. They are particularly useful for businesses that operate in areas with unreliable internet access.

5. Virtual Phone Systems

Virtual phone systems, sometimes called virtual PBX, are designed primarily for small businesses and remote teams. These systems rely entirely on internet-based communication and require no physical hardware other than devices to make and receive calls, such as smartphones or computers.

Virtual phone systems are often used to forward calls from a business number to a mobile device or home phone. They offer basic call management features like call forwarding, voicemail, and automated greetings but tend to lack some of the advanced functionalities found in VOIP or PBX systems. 

Their simplicity makes them a cost-effective choice for businesses with fewer needs for a full-scale telephone system.

Choosing the Right Telephone System for Your Business

There are various telephone systems to choose from, and the right one depends on your business's size, structure, and communication needs. Landlines and on-premise PBX systems are more suitable for businesses with complex, long-established networks, while hosted PBX and VOIP systems cater to modern, internet-connected organisations with more flexible work environments.

Each system comes with its own set of features, costs, and installation requirements, so taking the time to understand your organisation’s needs will help you choose the right option.