With business communications always the utmost consideration in the modern office it is imperative that the department or people responsible for the contracting of telephone systems are aware of all the advatages and disadvatages of different systems.

Telecommunications used to be a simple equation of phones, wiring, a switchbox, and the public standard telephone network. Then VoIP and wireless technology came along, changing the telecom landscape completely. Today’s businesses face a bewildering array of choices when it comes to implementing a phone system. This white paper will help you navigate the options and find the solution that fits your business.

Options

The simple innovation of transmitting voice over a data network has multiplied the possibilities for business telecommunications exponentially. The right phone system depends on your company’s size, structure, business model, industry, and budget. Here is a look at the three main decisions you will face as you explore your options.

1. Which Network?

Telecommunications signals travel over two types of networks: the conventional PSTN (public standard telephone network) or a data network. Since nearly all businesses already have a LAN and/or Internet access, the decision comes down to whether to maintain both voice and data networks, or to migrate the entire phone system onto the data network.

Conventional phone networks have the benefit of seniority: most companies already have an analog infrastructure in place-the wiring, phone handsets, and key systems or PBXs. Many companies are reluctant to scrap their network and build a VoIP infrastructure from scratch. In addition to protecting their investments, companies may trust the old system to deliver better sound quality and security, since the PSTN is not subject to the whims of the Internet. The PSTN functions during a power outage, for example, whereas VoIP requires a constant Internet connection.

Voice over Internet Protocol (VoIP) is the (relatively) new kid on the block, offering an unbeatable value proposition: advanced functionality at a lower cost. VoIP technology converts voice signals into digital data packets, which it transmits over a data network: the company LAN, WLAN, the Internet, or wireless. A company’s VoIP network is accessible not only in the office, but from any Internet contact point-which, thanks to wireless hotspots, is just about anywhere in the world, any time of day. Since voice data travels over a company’s computer network, VoIP also has the advantage of easy maintenance and integration with data communications applications such as CRM.

VoIP technology is more likely to run into quality issues, however. In its early stages of development, VoIP was prone to time delays and poor sound quality. These issues have all but disappeared with technological advances. But the fact remains that VoIP depends on an active Internet connection. Limited bandwidth, compatibility of the recipient’s hardware, and incorrect sequencing of voice data packets could compromise sound quality-and if the connection is lost due to power outage or server problems, so is the call.
Integrated telecommunication systems combine the best of both worlds-they bridge the gap between analog and digital telephony. Integrated technology allows voice and data networks to communicate. By maintaining both networks, companies protect their capital investments. Rather than scrap their legacy systems, they simply extend them by attaching VoIP functionality as needed. This enables gradual migration to VoIP’s next-generation functionality without the disruption of a complete system overhaul. And the redundancy between the two networks prevents system down time in the event of a power outage or server failure.

2. What Equipment to Purchase?

Each networking solution-analog, VoIP, and integrated-involves a different set of equipment.
Conventional network equipment consists of phone handsets, a keyboard system or PBX (Private
connecting the equipment to the PSTN. PBXs are often prohibitively expensive for small- to mid-sized companies, and are increasingly obsolete with the advent of IP PBX, which can handle both analog and digital signals. But companies that have already invested in an on-premises PBX can leverage that technology in an integrated phone system, rather than starting from scratch.


A VoIP network calls for IP-enabled phones, access to an IP PBX (on-premises or leased from a service provider), and cables for connecting the phones to the data network.

Integrated network equipment varies depending on the company’s legacy system, and includes various hardware and software designed to repurpose analog equipment for use in a converged voice-data network. Nortel, Inter-Tel, and other telecom leaders have developed technology that retrofits conventional systems for digital voice technology. Inter-Tel’s Axxess Converged Communications Platform, for example, maps VoIP capability onto a client’s legacy analog equipment, providing seamless integration of analog, digital, and wireless service.

The nucleus of an integrated system is the IP PBX, a central switchbox capable of interpreting and transmitting signals in either analog or digital format. Companies that already have a traditional PBX can retrofit it to work with an IP network as well. Nortel’s Business Communications Manager, for example, converts traditional PBX equipment to IP with add-on boards and gateways. Even traditional phone handsets can be converted to IP, with Analog Telephone Adapters (ATA).

3. Hosted Service or On-Premises Architecture?

Your telecommunications hardware purchase will also depend on your service contract. Service providers may simply provide access to the public network-either the PSTN or the Internet. Or they may provide both network access and the necessary communications infrastructure. For example, businesses have the option to purchase a PBX for on-premises installation or lease access to a central PBX maintained by the service provider. Since PBX systems involve a significant upfront investment, hosted service offers an affordable alternative for small and mid-sized businesses.


The scalability of hosted service makes it a good choice for small, seasonal, and rapidly growing businesses. Service providers such as Speakeasy, Vocalocity, and Packet8 offer monthly subscriptions on a per-user basis. Subscribers can choose functionality a la carte, paying only for the features they need. Hosted service offers the ultimate in flexibility-providers are always on hand with high-capacity, state-of-the-art equipment when needed. Subscribers can ramp up or add advanced features instantly. In addition, companies save on IT costs-maintenance is the provider’s responsibility.

A host of information on Telephone Systems can be found at Telephone Systems.