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Although it has existed for several years, business phone systems employing voice over internet protocol, or VOIP, have surged in popularity because it is proving to be highly cost effective.
Why? Because a chief advantage of a VOIP business phone system is the savings on long distance calls. Companies in Los Angeles, Riverside, Orange and San Diego counties that conduct business nationally or internationally may be able to cut their telephone bills by as much as 80 percent, because long distance calls and local calls are similarly priced. A conventional circuit-switching network charges according to the distance a connection must travel. With a VOIP phone system, businesses can call Dallas - or London - at generally the same rate as a local call.
This is how a VOIP phone system for a business works:
A company specifies a phone number which can be local to any city in the US. With a traditional telephone setup, wires are run to your destination with that number; with a VOIP business phone system, calls to that number are instead routed to the VOIP company's switch. Phones in your office are linked to your internet connection and from there to the VOIP company switch. This arrangement allows your company's phones to be anywhere an internet connection exists, not just a single location.
Because an internet connection is high bandwidth, no additional wiring is needed to connect multiple calls. A VOIP phone system is suited for business because many - even hundreds - of simultaneous calls can be transmitted on a single internet connection.