Search by keyword, such as: divert, calls, chats …

What are business telephone systems?

Moneypenny has the perfect telephone system for your business

Confused about the different types of business telephone systems?

Don’t worry, you’re far from alone. It can be a bit bamboozling. Here’s our in-a-nutshell explanation to help you understand them a little more.

A business telephone system is a system set up to help you manage your business calls – whether you receive tens of thousands or just tens of calls a day. As a small business, you may well question whether you need such a thing.

But if you ever find yourself unable to answer calls when you’re busy, or if you have set up an office and are fighting over the phone, then you will most likely benefit from a business telephone system. There are a few different types of business telephone systems. Here are the main three.

So, what is it?

(This could get a little techie, so you might want to grab a coffee)

Basic System

This is a traditional telephone system that uses PSTN (copper wire telephone) lines and ISDN (digital telephone) lines to provide access to the telephone network. This system is installed and maintained at the business premises by a qualified technician, and usually requires its own telephone wiring, which can be disruptive when it is installed.

With this set-up you can expect basic features such as voicemail, the ability to transfer calls to another handset, and an on-hold facility. But compared with other systems, it is very much a no-frills telephone system option.

Digital Telephone System

This allows you to make calls over the internet using VoIP. Calls are made and received using an existing broadband connection. To achieve this, you need to install physical hardware to send voice calls over the internet, and software which would be installed onto the company’s server. As with the Basic System, it requires installation and maintenance by a qualified technician.

Hosted Telephone System

This system is delivered as a hosted service by an Internet Telephony Service Provider, which is accessed via the internet on a pay-per-service basis. Sometimes called a Virtual PBX, it can allow a business to avoid the expense of installing business telephone system equipment.

This system still allows the business to use features such as voicemail, call transferring, and automated greetings. Hosted telephone systems can function over the PSTN, over the internet via VoIP, or using a combination of the two.

We give you amazing people and technology:


Your own Moneypenny PA to answer calls exactly as if based in your office.

Discover >
Live Chat

Amazing people, briefed by you to manage chats whenever you can't.

Discover >
Pocket Phone System

All the functions and support of an office phone system, minus the hardware.

Discover >