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IP PBX 101: What Is an IP Phone System?


This is an image of an IP phone system phone.


In today’s modern business landscape, communication is essential. Companies need to be able to communicate effectively with their employees, partners, and customers to succeed. One of the most important tools for communication in business is the phone system. With the advancement of technology, traditional phone systems have been replaced by IP phone systems. In this essay, we will discuss IP phone systems, their features, benefits, and how they work.

What are IP Phone Systems?

IP (Internet Protocol) phone systems, also known as VoIP (Voice over Internet Protocol) phone systems, are phone systems that use an IP network for communication between phone system controller and the endpoint instead of traditional phone wiring. In some situations, this communication happens   across the Internet, the world’s largest IP Network.  Unlike traditional phone systems, IP phone systems transmit voice data over the internet instead of using analog lines. IP phone systems can be used on a variety of devices such as desktop phones, smartphones, and laptops.

How Do IP Phone Systems Work?

IP phone systems use a technology called packet switching to transmit voice data over the internet. Packet switching involves breaking up voice data into small packets and transmitting them over the internet to their destination. Once the packets arrive at their destination, they are reassembled into voice data and played through the receiver’s speaker.

IP phone systems can be set up in a variety of ways, depending on the needs of the business. The most common setup involves an IP PBX (private branch exchange) server, which is a software-based system that manages the calls within the organization. The IP PBX server is connected to the internet and the company’s internal network, and it routes calls to the appropriate device.

Features of IP Phone Systems

Call Forwarding / Simultaneous Ring: IP phone systems can forward calls to any device, such as a mobile phone or another extension.

Voicemail: IP phone systems can record voicemails and deliver them to an email inbox, making it easier for users to check their voicemail.

Conference Calling: IP phone systems allow multiple users to join a call simultaneously, making it easier to have group discussions.

Caller ID: IP phone systems display the caller ID, making it easier for users to identify incoming calls.

Call Recording: IP phone systems can record calls, which can be useful for training and quality assurance purposes.

Benefits of IP Phone Systems

Cost savings: IP phone systems are often less expensive than traditional phone systems because they use the internet instead of analog lines.

Flexibility: IP phone systems can be used on a variety of devices and can be accessed from anywhere with an internet connection.

Scalability: IP phone systems can be easily scaled up or down to meet the needs of a growing or shrinking business.

Integration with other systems: IP phone systems can be integrated with other business systems, such as customer relationship management (CRM) software, to streamline business processes.


IP phone systems are becoming increasingly popular in the business world because of their cost savings, flexibility, and scalability. They offer a variety of features that can improve communication within an organization, such as call forwarding, voicemail, conference calling, caller ID, and call recording. IP phone systems use packet switching technology to transmit voice data over the internet, and they can be set up in a variety of ways depending on the needs of the business. As technology continues to evolve, we can expect IP phone systems to become even more advanced and integrated with other business systems.

D & P Communications offers two solutions for IP phone systems. For small businesses, we offer a hosted solution, and for larger telecommunications needs we have a premise based IPBX system. Speak with a member of our business team today to find out which solution works best for your business’ needs.

Posted in Residential |