What is Hosted Telephony and How Does It Work?

What is Hosted Telephony?

Hosted telephony is a phone system hosted in the cloud rather than on-site. It’s a versatile solution suitable for businesses of all sizes, including call centres and customer support departments.

• No upfront equipment purchase costs
• Flexible communications management
• Ultimate control from Internet-enabled devices

Hosted telephony leverages cloud technology, eliminating the need for expensive on-site hardware and traditional analogue or ISDN phone lines. Instead, your business phone system is hosted remotely and accessed via the Internet, transforming the phone system into a software-based solution.

The remote system, known as a Hosted PBX (Private Branch Exchange), can be accessed through leased lines or other high-quality internet connections. This setup provides a flexible, reliable, and efficient way to manage your communications. Once installed, the system can be easily managed, and additional features can be added as needed.

In this arrangement, our provider houses the Hosted PBX and handles all technology and maintenance.

In contrast, traditional phone systems are based on-premises and connect directly to an ISDN line. Each staff member typically requires a desk phone for incoming calls. Hosted telephony allows calls to be received on desk phones, softphones, or mobile applications.

It’s important to note that BT plans to switch off all ISDN (Integrated Services Digital Network) services related to PBX systems by 2025. Hosted telephony is a natural alternative, using data connections to deliver calls.

How Does Hosted Telephony Work?

Hosted telephony operates using the same LAN network as office Internet, automatically connecting to the IP network.

It communicates over the Internet using a router, connecting securely via the Internet or through a dedicated business connection. For incoming calls, the phone connects to the IP network and then to the remote host, routing the dialled number to the appropriate department or individual.

For optimal performance, hosted telephony requires a private connection and adequate bandwidth. Bandwidth, the rate at which data is transmitted across a network, can be measured and upgraded to enhance system performance.

These systems are best used with dedicated IP handsets or virtual phones, chosen before installation, with complete training available.

Once operational, businesses can manage international communications across multiple sites through a simple interface.