BLOG ยป Types of Business Phone Systems: Which One is Right For Your Business?

Types of Business Phone Systems: Which One is Right For Your Business?

Types of Business Phone Systems: Which One is Right For
                                Your Business?
  • Nowadays, more than ever, effective communication is important in the world of business. It is important to communicate effectively with stakeholders, no matter how big or small your business is, whether it is online or offline.
  • The first thing that comes to mind when you hear of business phone system is the traditional landlines installed on all desks in offices, with their lengthy cords and extension buttons. When customers have a problem with an existing product or service, they want to speak to a company representative. In addition to improving external communication, a company should also improve its internal communication.
  • It is for this reason that the best business phone systems can be a company's best option. While many customers contact businesses via email and messaging apps for support, service, and inquiries, a significant number still prefer to speak with company representatives over the phone.
  • Business phone systems are providing solutions for businesses that traditional phone lines do not allow or making it practical. It promotes effective communication and streamlines business operations through quick collaboration. Call transfer, call metering, accounting, conference calling, voice message boxes, and other features are essential for an interconnected business telephone system.
  • This article explains the types of business phone system with examples available to small and large businesses. And also explains some important factors to take into account when choosing a business phone system to improve the efficiency of your business.

What are the Different Types of Business Phone Systems?

  • The following characteristics should be present in the business phone systems you choose for your organization:
What are the Different Types of Business Phone Systems?
  • Multiple lines for managing high call volumes.
  • Call forwarding feature to an email address or a mobile device.
  • Playing some music during wait times and messages for on-hold calls.
  • Support for headsets and handsets.
  • There are three most important business phone system types are: key system units (KSUs), private branch exchange (PBX), and virtual phone system.
1. KSU:
  • The key phone system is the most basic of the three telephony systems types. It is necessary to have a serviced professional install a key system unit (KSU), which is a hardware system installed in a closet on your premises. Each phone line is manually connected to a key phone system telephone. The user presses a button to initiate a call, and the button illuminates to show which line is active.
  • Additionally, there is a portable KSU system known as KSU-less. This unit is placed on the desk. The KSU-less box contains extensions, like a fax machine and answering machine, as well as jacks for connecting a certain amount of phone lines. The intercom, speakerphone, and on-hold buttons are among the basic analog features of the key phone system. The key phone can only handle a certain number of phone lines due to the landline-based system, which might be sufficient for a small office.
Pros Cons
Make and receive calls both within and outside the organization Potential restrictions for larger businesses
Simple customization with software updates Might not have all the features of a full-fledged PBX
Reliability and low maintenance costs Effective for a maximum of 50 employees
2. PBX:
  • Private branch exchange, or PBX, is a technology that enables businesses to handle multiple calls on a private phone network. Private branch exchanges are private telephone networks that control call setup and routing through various hardware components, enabling internal phone lines for user communication. A PBX phone system includes business telephony features like phone calling, call queues, call forwarding and transfers, voice mail, and an auto attendant.
  • In addition to enabling voice-over-internet-protocol (voIP) or analog and digital phone lines for outgoing calls, PBX systems provide your business with team member communication. By using PBX, you can divide your physical phone line into multiple lines, allowing calls to go to various operators or offices within your company. Additionally, you can make free calls on various phones with PBX.
Pros Cons
After the initial investment, customers usually find lower monthly recurring costs The purchase of hardware and software licensing results in higher initial costs
Capability to interface with other business software, such as CRM systems The customer is responsible for any maintenance costs
The PBX provider will set up, program, staff-train, and validate the network Managing multiple sites can be more challenging
Customers have complete control over all data and settings Network security is the customer's responsibility
3. VoIP:
  • A VoIP phone system enables you to make voice calls over a wireless internet connection rather than traditional plain old telephone service lines (POTS).
  • A VoIP phone may have an identical appearance to a traditional desk phone. Behind the scenes, there is a difference. VoIP will use the internet to send voice calls in the form of data packets rather than a physical pair of copper cables. VoIP phone systems don't need desk phone hardware; they can also be software applications, known as softphones.
  • Their cutting-edge service is made possible by their better call quality when compared to traditional phone systems. Most reliable VoIP providers, like TeleCMI, also provide additional features that aren't available with traditional phone services, like the ability to share phone numbers with teammates, set business hours, and quickly forward voicemails to emails.
  • You receive all the sophisticated phone features, including caller tones, call waiting, call routing, multiple phone numbers, auto-attendant, and more, in addition to the cost savings. For this reason, the majority of small and even large businesses are moving from traditional phone providers to business VoIP providers.
Pros Cons
VoIP equipment allows for free calls between individuals, including international calls Latency issues may impact the quality of calls made using VoIP phone systems
Superior sound quality combined with high-speed internet A poor internet connection degrades call quality and the overall VoIP service
When using VoIP for voice calls, you can also send documents, videos, and photos VoIP security is a major concern because of potential threats, viruses, and malware
VoIP services provide reasonable subscription packages that include repair and maintenance costs The bandwidth of your internet determines the VoIP's voice quality
What's the Best Way to Choose the Right Phone System for Business?
What's the Best Way to Choose the Right Phone System for Business?
  • To identify the right business phone system for your business, you should take a few aspects into consideration, as seen below:
1. Evaluate your business's phone system requirements:
  • Identifying the requirements of your business is the first step towards selecting the best business phone system. Every business or organization has a unique set of requirements for efficient operation and meeting business objectives.
  • Here are some things to think about in order to identify those needs:
  • a) For many years, the analog phone system was known as the (PSTN) Public Switched Telephone Network, or landlines as it is more commonly known. This has various extension numbers in addition to standard features like call transferring, call forwarding, and call redirection.
  • b) The virtual phone type assigns your business a virtual number and connects callers to your remote staff members via mobile or fixed devices. Its features may include automated answering services, voice mail, call forwarding and screening, a toll-free main phone number, and so on.
  • c) The newest technological innovation is the VoIP phone system. VoIP phone systems come in two varieties:
  • 1. On-premise solutions, which give you control over your network by requiring all necessary hardware to be kept in your physical location.
  • 2. Cloud-based VoIP systems, which use the cloud to eliminate the need for any hardware to be kept on site. Furthermore, users of cloud-based systems just need to depend on their trusted providers like TeleCMI for system maintenance and operation.
  • 3. TeleCMI has the following features in the cloud-based phone system:
  • Call Recording
  • Call Analytics
  • Call Barging
  • Call Whispering
  • Call Forwarding
  • Call Masking
  • Call Conferencing
  • Call Queuing
  • Call Routing
  • IVR
  • Sticky Agent
  • Automatic call distribution
  • Caller ID
  • Customized Reports
  • Live Call Feeds
  • Updating Business Hours
  • Customized Greetings and Music
2. Explore customer reviews for the business phone systems you're evaluating:
  • After compiling a list of potential systems, it's time to begin comparing their features and costs. The majority of providers of business phone systems provide pricing options based on the business's structure. One effective way to compare them is to create a table of each system's plans, cross-checked against all of your requirements. This will provide you with a high-level summary of which of these systems is capable of fulfilling the requirements that your business has.
  • One trusted platform to search for positive and negative feedbacks from the real users is G2 software review platform. Explore the reviews from G2 software to get the trusted provider for your business phone system.
  • Reviews of phone systems are insightful and can assist you in directly understanding software choices from the perspective of users. You can find the important factors you need to take into consideration by reading reviews from businesses that are most similar to your own.
  • Reviews of phone systems can offer insightful information about the features, cost, reliability, and customer support of a system.
  • Businesses can learn about the benefits and drawbacks of the system as well as what to expect from this feedback.
  • Before a business chooses to use a phone system, reviews can help find possible problems with it.
  • They can offer insightful feedback to help providers improve their products and services and help make sure they are delivering on their promises.
3. Request quotes from business phone system providers:
  • When you are ready to sign the contract and receive your pricing information, take a moment to confirm that you are really asking the providers for a quote. When you are ready to buy a business phone system, looking for a new supplier, or comparing prices, it is the ideal time to request a quote.
  • Getting a quote helps you with financial planning and budgeting by providing you with a clear picture of what the costs will be. It also gives you the chance to compare various providers.
  • With TeleCMI, obtaining a business phone system does not have to be difficult. In fact, we have made it incredibly simple and quick with our quote tool. Our sales team will provide you with accurate pricing that meets your business needs as soon as you submit the form. Pricing will be definitely based on your needs, and quotes will be sent directly to your mail ID.
4. Try out different business phone system demos and free trial offers:
  • When you have a table of providers list, then you should definitely tryout the types of business phone systems, to choose which one fits your needs. You can easily do this by using their free trials or demos.
  • Whether you need enhanced communication features or seamless integration capabilities with your existing tools, trying a free trial or demo allows you to test the functionalities of the platform.
  • Most trusted provider like TeleCMI with 2000+ clients in 70+ countries is a great choice because their dedicated team will guide you in each and every step. After experiencing your free trial or demo, you will be knowing that TeleCMI stands out as the best choice than the top leading providers.
  • It is crucial to have a clearly defined business goal in mind before selecting a business phone number. Make sure you understand the needs of your business, your budget capacity, and your employees' and customers' requirements.
  • Go with the phone system that will continue to grow with your business, not the one that matches your current needs. Before purchasing a business phone system, make sure you consider the advanced features and scalability nature.



Yes, having a phone system for your business helps for streamlined communication. It also helps you to manage your calls efficiently with features like call routing, voicemail, and call recording.


As a business owner, using the mobile phones for your business communication may feel convenient. But, a dedicated business phone system from a reliable provider offers advanced features like call routing, CRM integration, and conference calling. It ensures excellent productivity for your team.


When you are clear on your business needs like number of employees, call volume, budget, and required features, start researching the different providers. Explore their customer reviews, request a demo, and start free trial. And, choose the best which one fits your business needs.


VoIP technology uses advanced features, offering high-quality voice calls when compared to traditional landlines. Check for the reliable VoIP providers who give you 100% assurance on their services.

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