VoIP vs Centrex vs POTS vs PBX: A Comprehensive Comparison for Modern Businesses
Effective communication is vital for any business in any industry or size. Over the years, telephone systems have evolved from basic analog lines to sophisticated digital solutions. Which is best for business? POTS, PBX, Centrex, or VoIP systems?
POTS: The Foundation of Telephony
Since the late 19th century, the foundation of telephone communication has beenPlain Old Telephone Service (POTS).POTS transmitted voice over traditional copper wires. It also had the capability to automatically switch, eliminating the need of operators because we no longer needed people to direct our calls by moving wires on a switch board to connect our calls to the correct recipient.
To transmit a person’s voice along POTS lines, the sound waves are converted to electrical analog signals, copper wires then carry these signals with assisted by switches. It establishes a dedicated circuit between two points, connecting businesses to local central offices. This reduced the cost of long-distance calls.
Today POTS systems are great for emergency services as a backup. Because they are dedicated transmission lines, they are not susceptible to power outages. They are often great emergency solutions for government buildings, public parks, pool areas, airports, and train stations.
PBX: Enhancing Business Communication
Private Branch Exchange (PBX) shares lines and effectively route calls. It is made up of phones and telephone lines(trunks). When PBX systems were first introduced in the middle of the 20th century, they made it possible for companies to easily handle internal and external communications between their various business locations.
PBX systems required that a switch box was built on-site of the business. This allowed for a connection between the public switched telephone network (PSTN) and plain old telephone service (POTS) lines which enabled faxes and phone conversations between employees of businesses.
PBX also offers features like
- call forwarding
- voicemail
- conferencing
- automatic switching
- caller ID
However, to add more employees to the network, a business would need to add new telephone wires and jacks. Furthermore, to make external calls, a business would need to pay for more phone lines. It also did not offer multimedia services like voice mail conversion to email and remote working capabilities.
Due to its high setup and maintenance costs coupled with the requirement of niche hardware parts, PBX is slowly being retired out.
Centrex: A Hosted PBX Solution
Centrex (Central Exchange)services provide PBX functionalities without on-site equipment, it’s managed by a service provider at their central office. In practical terms, a business is assigned a specific number of phone lines based on the number of users. The phone system will be connected to the operator's network by a DSL router, which is also connected to the IP terminals of the business. This allowed internal teams to configure their central phone system through a customizable web interface.
According to Chron, This system offers small businesses a way to enjoy PBX benefits without significant investment in hardware. Centrex systems resemble regular phone lines besides their special features are business-wide instead of being limited to very few handsets within a team.
Centrex provides features such as,
- Three-way conference calling
- Call transferring
- Caller ID and voicemail
- Network scaling
However, Centrex potentially has higher long-term costs as well as certain costs not being covered. To be truly effective Centrex requires powerful high-speed Internet.
VoIP: The Future of Communication
Voice over Internet Protocol (VoIP)represents the latest advancement in telecommunications, transmitting voice data via the Internet. Since the late 1990s, VoIP has gained popularity due to its cost-efficiency and features.
VoIP transmits data packets (voice) from one IP address to another over the Internet. To accomplish this, the voice samples need to be broken down to smaller data. Each voice sample taken in is assigned a numeric value that is then converted into binary code. The binary data is then grouped into packets which contain a part of voice along with information needed for transmission (sample rate and timestamps). From there, these voice packets are given routing information and sent to the appropriate recipient.
VoIP was first intended to be a substitute for costly long-distance call costs. VoIP, however, gained popularity as a result of the rapid improvements in technology and the growing demand for simple, inexpensive communication. Over 35 million VoIP lines were installed by US businesses between 2010 and 2018, according toTech.co
Why VoIP Is The Best for Business
- Cost Efficiency: VoIP does not require costly hardware or frequent repairs with niche parts.
- Advanced Features: VoIP integrates features such as call forwarding, voicemail to email, video conferencing, answering rules, and limited bandwidth usage, enhancing business operations.
- Scalability: VoIP systems grow with your business which allows your business to add new users easily through our portal. Just add a new user and give them a number and they are set up to start receiving and making phone calls.
- Flexibility: It allows for employees to work remotely from anywhere as long as they have an Internet connection.
- Integration: VoIP seamlessly integrates with other CRM tools like Salesforce, Microsoft teams, and more.
VoIP stands out as the most cost-effective and flexible solution for any business. Our VoIP services are designed to meet the needs and grow with your businesses with seamless integration and expansion. Contact us today to discover how our VoIP services can enhance your business communication.
