+44 (0)1707 607 100 | contactus@minervauk.com
08:30 – 17:30 | Monday-Friday

minerva-logo
+44 (0)1707 607 100 | 08:30 – 18:00 | Monday-Friday

+44 (0)1707 607 100
08:30 – 18:00 | Monday-Friday

minerva-logo

Hosted Telephony: What Are the Benefits and How Does It Work?

Hosted Telephony: What Are the Benefits and How Does It Work?
Table of Contents

Hosted telephony, also known as cloud telephony, has revolutionised how businesses handle their communication needs. By leveraging the power of the internet, hosted telephony offers numerous advantages over traditional phone systems. Our blog explains what exactly hosted telephony is, its benefits, and how it works.

What is Hosted Telephony?

Hosted telephony is a cloud-based communication service whereby the telephone infrastructure is managed by a third-party provider and delivered over the internet. Instead of relying on on-premises PBX (Private Branch Exchange) systems, hosted telephony utilises VoIP (Voice over Internet Protocol) technology to transmit voice calls as data packets over the internet.

How Does Hosted Telephony Work?

The operation of hosted telephony is a seamless integration of modern technology. Here is a simplified overview of the process:

  • VoIP Technology: Hosted telephony uses VoIP technology to convert voice signals into digital data packets, which are transmitted over the internet.
  • Hosted PBX: The PBX system is hosted in the cloud by the service provider, who manages the infrastructure, maintenance, and updates.
  • Internet Connectivity: High-speed internet connectivity is crucial for the efficient functioning of hosted telephony, ensuring clear and uninterrupted voice communication.
  • IP Phones: Users can make and receive calls using IP phones, softphones, or traditional phones with VoIP adapters.
  • Unified Communication: often integrates with other communication tools like email, instant messaging, and video conferencing, offering a unified communication platform.

The Benefits of Hosted Telephony

The shift to hosted telephony brings a multitude of benefits, making it an attractive option for businesses of all sizes. The Big Switch Off of the Public Switched Telephone Network (PSTN) in the UK, the legacy analogue phone network, is scheduled to complete by 31st January, 2027. This means that ALL remaining analogue phone services will be switched off then, and UK businesses and consumers will need to transition to digital communication technologies, primarily using Voice over Internet Protocol (VoIP). There are several advantages to this:-

Cost Savings

Hosted telephony significantly reduces capital expenditure. There is no need to invest in expensive on-premises hardware, and maintenance costs are minimal since the service provider handles all technical aspects. Additionally, call charges are generally lower, especially for long-distance and international calls.

Scalability

One of the most significant advantages is its scalability. Businesses can easily add or remove lines and features as their needs change, without the need for substantial hardware upgrades or installations. This flexibility ensures that the telecommunication system grows with the business.

Reliability and Disaster Recovery

High reliability and robust disaster recovery capabilities. Since the infrastructure is hosted in multiple data centres, it ensures continuous operation even in the event of a local outage. Service providers often guarantee high uptime and provide redundant systems to prevent service interruptions.

Advanced Features

A suite of advanced features that enhance business communication. These features include voicemail to email, call forwarding, auto-attendant, call recording, and more. Businesses can customise their telephony system to meet their specific requirements.

Mobility and Remote Work

In today’s era of remote work, hosted telephony is crucial for businesses. Employees can access the telephony system from anywhere with an internet connection, using their IP phones, softphones, or mobile devices. This mobility ensures that business communication remains seamless, regardless of location.

Enhanced Collaboration

Businesses can integrate voice communication with other collaboration tools like email, instant messaging, and video conferencing. This unified communication approach fosters better collaboration among team members, improving productivity and efficiency.

Security

Security is a top priority for providers. They implement stringent security measures, including encryption, firewalls, and regular security audits, to protect sensitive communication data. This ensures that businesses can communicate securely and confidentially.

Webex

Webex, a product of Cisco, plays a significant role in hosted telephony, providing a comprehensive suite of tools that facilitate both voice and video communication. It enables individuals and teams to connect virtually through high-quality video and audio, share content, and collaborate effectively, regardless of their location. Webex is widely used across many industries and it also comprises integrated AI features, so it can perform tasks such as taking meeting notes. Webex is fast becoming an indispensable part of modern communication solutions.

Conclusion

Hosted telephony is transforming the way businesses communicate by offering a flexible, cost-effective, and feature-rich alternative to traditional phone systems. By leveraging the power of the cloud, businesses can enjoy enhanced mobility, scalability, and reliability. With the advent of the Big Switch Off in January 2027, where all analogue lines will be made obsolete by BT, hosted telephony is set to become the future of business communication. Businesses need to start planning ahead and ensuring that they have hosted telephony alternatives in place before the PSTN is switched off.

Whether you are a small business looking to improve your communication infrastructure, a large enterprise seeking to optimise costs and efficiency, or an organisation that needs to transition to VoIP before the Big Switch Off, we can help with your hosted telephony needs, together with our telecoms partner, Fidelity Group.

Please contact us to find out more.

About the Author: