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The 3 Major Types of Phone Systems

Many people have the illusion that only a "phone" is their business phone. In practice, behind the background, there is so much more going on to ensure that the tons of office phones around the world are working properly and reaching their calling destinations. The phone systems used by your business telephones are one of the parameters in this method. It is not even a box placed on your office's back wall.

What Are The Three Types of Phone Systems

There are three major types of business phone systems. They are:

  • PBX On-Premise

  • The VoIP PBX

  • VoIP Phone Device Hosted

Let’s learn about what most of these business telephony devices do and how they vary.

PBX On-Premise

The PBX is very clear in how it works when you break it down. This is the real version of the telephony company and has been used for several decades now. This device is the phone box inside the walls of the business that takes all the received calls and all the calls on those lines and serves them to the right degree.

There are now several other features included in the On-Premise PBX system, however, a conventional PBX manages the phone calls of the organizations at the heart of the system.

The conventional system is being rapidly replaced by its younger, more modern counterpart: the VoIP PBX.


An improved variant of the conventional telephone system is the VoIP PBX, or VoIP phone system.

Well, you might wonder, "What's the dissimilarity?" You will discover that the primary distinction between conventional business phone systems and the VoIP PBX system is how they operate and the various technologies they use.

The On-Premise PBX uses analog or digital wires, called ISDN, while a VoIP PBX makes and receives calls using your broadband or data link. This could be slightly cheaper than the alternative.

Better quality voice calls, free calls between users, and the ability to use one device for several sites are the advantages of using a VoIP PBX over an alternative PBX.

VoIP Phone Services Hosted

This takes us to the last, but certainly not least, the company telephone system. The most modern, portable type of telephone system is the hosted VoIP phone system. On the wall of the office, this model removes the box and brings all the calls to the cloud. This approach requires your calls and texts, converts them into digital bytes, transports them to the cloud, and sends them within msec on their merry way to the other end of the call.

Lower costs, higher quality audio and video calls, greater user versatility, and reduced maintenance and implementation costs are the benefits of this device over the On-Premise and VoIP PBX.

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