How to choose an office phone system?

Choice of phone systems for small office, or a big one, is one of the important decisions you would make while setting up your small business. Overwhelming array of available choices in phone hardware and service can make the selection process quite confusing.  If you choose the right phone system, it can potentially increase productivity of your employees and enhance the perception of your business to your customers.

To pick the right phone system get a service provider to assess your business needs and then weigh them against the features of a phone system. First you have to evaluate how many lines and extensions you need.  Assess how your business may grow in two to three years and consider a phone system that could expand to meet your needs.  Phone systems come with a lot of options and accessories, and you generally have to pay extra for them. For example voice mail is a necessity for any business.  If your budget allows, you may consider other important phone system features such as call forwarding, caller id, one-touch dial, on hold music and conferencing.

Common terminology used by leading phone systems companies.

• Ports refer to number of connections that a phone system can handle. This includes both the total number of incoming lines and extensions available.
• Lines refer to the telephone lines coming into your business from your phone service provider. This is also referred to as “trunks”.
• Cabinet is the main box that holds the phone system that routes your calls. This is where the phone system is configured.  This is also referred to as “central office” or “CO”, “KSU” or “key system unit”, “central unit” or “base”.
• Extensions are the unique numbers that identify the phones, modems and fax machines. These are internal to the business and connect to the outside world via the cabinet. The extensions are also used for internal communication within the company.
• Computer telephony integration (CTI) is a set of applications that integrate your telephone system with a computer. It enables you computer to receive voice, data, fax calls and includes features like incoming call routing, one click dialing, video conferencing, telephone directory and caller identification.

What are the most prevalent phone systems?

Key Systems or Key Telephone Systems are the entry-level choice for small businesses with up to forty employees.  Each individual phone provides a selection of buttons corresponding to the number of phone lines available. Upgrading a Key Telephone system is not difficult but they are not as customizable as a PBX phone system.  Depending on your expansion plans, PBX may provide a better long term value.

KSU-less systems are usually suitable for businesses with less than ten employees and is the least expensive.  It is one of the cheapest options and is very limited in features. KSU-less system does not need a cabinet as the telephones themselves have all the needed routing software installed. Disadvantage of a KSU-less system is that it is not supported by telecoms or phone system vendors and you would have to install and service it yourself.  KSU-less telephones are not compatible with Key or PBX phone systems.  If your company grows to more than ten employees, you would have to get a Key or PBX phone system and rendering KSU-less phones useless.

Private Branch Exchange (PBX) phone systems are suitable for businesses with more that forty employees or if your desired features are not offered by key telephone systems. PBX systems are easier to upgrade and customize, and offer more features as compared to other phone systems. This can be the most expensive option but the cost comes down as you scale, hence PBXes are more cost effective for large businesses with more than 100 employees.

Voice over Internet Protocol (VoIP) is a phone system that routes the calls through the internet and does not use regular telephone lines. VoIP phones are a good alternative to KS or KSU-less systems.  You will need a high speed internet connection and VoIP router to run a VoIP phone system. There are a few disadvantages of a VoIP phone system.  VoIP service is as reliable as your internet connection. A poor internet connection would deteriorate the quality of calls.  If you lose the internet connection due to power outage, you will also lose VoIP phone service.  VoIP phone service is portable.  You can carry the router with you and plug it into any internet connection.  But every time you change the geographic location of a VoIP phone, you have to inform your VoIP service provider.  Otherwise emergency calls cannot be routed to the nearby call centre. Remember to discuss security (encryption options) with your service provider to prevent evesdropping.  VOIP system is one of the least inexpensive options.

Hybrid systems - Distinctions between different kinds of phone systems have blurred over the years.  Phone systems that are a mix between key systems and PBX systems are often called hybrids.  Hybrids offer cost-effectiveness of a key telephone system while bundling the features of a PBX phone system.

How are the phone system and the service priced?
Overall cost of your telephone system may vary depending on many factors including for example – your monthly service fees, long distance toll charges, optional features like CTI, onhold music, voicemail, telephone cabinet, cost of telephones sets, expansion options, installation charges etc. Consider future growth while wiring your office since rewiring a few months or years down the road will be relatively more expensive.

How do I choose a phone system vendor?

There are important issues to consider while choosing a phone system provider.  Phone systems are fairly complex and you will need an experienced phone system vendor to supply, install and service your phone system.  Phone systems need ongoing hardware and software updates.  You vendor must be able to perform these updates in a timely manner. Ask the phone system company for an estimate for future upgrades and expansion.  This would help eliminate nasty surprises.  Make sure your vendor can also train your employees to use the phone system efficiently.  Remember to check references and get referrals before you hire someone to buy and install a phone system.  See if you know a similar sized business so that you can get recommendations and insights before making up your mind. There is no better way to evaluate a phone system than seeing it in action. 

Phone systems are an important investment for a business and it is important to get it right the first time. Phone systems prices can vary based on the number of extensions and your feature requirements such as conference calling, voice mail, integration with email etc.