Phone systems are absolutely essential for businesses to operate successfully. They create an interconnected system that can support multiple phones and telephonic features, including conference calls, call handling, call transferring, and more. While every business can agree on the essential nature of these networks, not all come to the same conclusion about how they should function.

When installing phone systems, the user has two main choices. The first is known as the Public Switched Telephone Network, or PSTN. Through this traditional method, analog data is transferred through an international network of copper wires. However, this method can present complications that lead to a disruption of business. This is why most professionals are switching over to Voice-over Internet Protocol, or VoIP. VoIP allows voice data packets to be sent over the Internet. This is a much more reliable and cost effective way for a business to operate.

When it comes to running a successful business, everything is about money. This is one of the major reasons why more people are moving towards VoIP systems. Since this type of phone system operates over the Internet, there are no additional charges for each call made. One simple payment of the standard Internet usage fee is enough to keep a VoIP system operational. In comparison, PSTN incurs a charge every time a call is made, regardless of whether it is a local or international call. In addition, many of the services that businesses rely on, such as call waiting and call forwarding, are only available at an extra cost when using PSTN. VoIP services, on the other hand, typically offer these and other useful features for no additional fee.

Another advantage VoIP has over PSTN is scalability. While PSTN services require the installation of new lines and hardware to increase operations, VoIP only requires simple software updates, coupled with an increase in bandwidth. This is a much simpler and more cost efficient method. PSTN also requires a significantly higher amount of bandwidth to operate, and each line requires about 64 kbps in each direction. However, VoIP requires a mere 10kbps to compress of a voice data packet. This reduction in bandwidth usage reduces the amount of bandwidth a business needs to purchase.

As you can see, VoIP offers a multitude of benefits over the traditional PSTN. VoIP was known for having some performances issues in the past, but since then these services have advanced significantly. Cost and bandwidth reduction are two of the major benefits of using this type of system, as well as increased scalability and more reliable services. As we move further into the technological age, VoIP phone systems are becoming the way of the future.

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