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What is an IP telephone system?

August 23, 2010

For many people, talk of IP and VOIP is just plain confusing. Principally though it is not that hard to understand as soon as your understand the terms that are used.

IP stands for Internet Protocol. With an IP telephone system using the same protocols as what is used by computers for accessing the internet. VOIP meaning Voice Over Internet Protocol.

For consumers, this means that they are buying a technical telephone system that offers a lot of functionality, depending on what is required.

As an example, a company will buy an IP telephone system which will consist of a number of different parts to make the system work.

The first thing that is needed is an incoming telephone phone line. It is recommended to have an ISDN2 line, as this gives you effectively 2 telephone lines on one. So you can answer a phone call, while someone else is on the phone.

The ISDN2 phone line will then need to be attached to a PBX exchange. PBX stands for Personal Branch Exchange, which is your own mini telephone exchange in your office such as the Panasonic KX-NCP500. The size of the equipment depends on the number of users and phone handsets that you need in your office.

Network engineers will then be able to wire up your office, connecting telephone and internet wall sockets with your office’s new mini phone exchange.

Then at each of your telephone wall sockets, you can connect one of the many different IP phones that are available.


Once the system is in place, users can make phone calls from any of the new installed phones as an internal phone call, which means no cost to call other people that are connected to the system.

Each phone is assigned a unique extension number which makes it easy to transfer calls and put callers on hold.

These are the basic functions that are available to users of an IP phone system. However, for business workers that may have workers working at different locations, there are a number of additional functions that are available.

Workers can login into their office phone from anywhere in the world using the IP Softphone. This works very similar to well known programs like Skype, but uses your own secure internal phone system and keeps calls within your firm and so reducing costs.

An IP system is ideal for all types of businesses and can be very cost effective for small to medium sized businesses that do not want to invest in complex computer servers and technical staff.

With an IP system, providers like Best 4 Business are able to remotely access the system to fix any faults almost immediately, meaning that you are able to get on with running your business without a technical headache!