VoIP technology uses a completely different infrastructure than traditional service. Instead of your phones traveling over the phone company’s network, Internet broadband service connects your local IP Network to the cloud where most VoIP providers host their feature-enabling
PBX (Private Branch Exchange). The resulting efficiency is revolutionary: Access to phone service and the Internet are achieved over the same broadband connection, opening up features and mobility options you may never have experienced. The system can be updated remotely and costs are often considerably less than traditional systems.
While “traditional phone service” has been around for generations, its technology is increasingly regarded as antiquated and more expensive. Business phone service has commonly been delivered over the
PSTN (Public Switched Telephone Network) with either an on-premise PBX (private branch exchange) with trunks to the phone company or
POTS (plain old telephone service) lines. The PBX is installed on-site at the business to enable calling features, routing, etc. – but it is typically more expensive to install and maintain, and can be vulnerable to events ranging from natural disasters to vandalism. POTS are more similar to your basic home phone service, lacking the robust features many modern businesses seek. Especially as business VoIP systems gain prominence, traditional providers must adapt to meet business needs, a process that is proving slow and costly.