With the overwhelming rise of digital communication, analog communication is gradually disappearing.

Digital technology was introduced into the telephone network to raise the standard of conventional voice services, add new features, lower costs, and improve voice quality.

In the beginning, aside from analog channels, most of the digital technology introduced into the digital network was initially inaccessible to data traffic. But now, a digital network has become an ideal environment for data communications services. Initially, direct digital access was available for high-end business applications only. 

Nowadays, all businesses, regardless of size, need proper and effortless communication systems that allow them to communicate inside and outside the organization. 

Although traditional telephone systems are still in use but technology is changing. The advanced needs and upgrades in communication are taking industries toward digital telephony. And businesses need to upgrade themselves according to the changes.

Understanding Digital Telephony

Technically, Digital Telephony allows the routing of voice conversations and telephone services over the internet. You can also route conversations through any other IP-based network telecommunication network. Digital Telephony has been in the market for a long time now. But it came to the limelight after the expansion of the internet.

But now, Digital Telephony is becoming the most widespread form of communication among industries.

Specifically, Digital Telephony is cloud-based telephony that uses internet protocols to communicate by digital means. Digital Telephony is the best way to unify a company’s communication. It has multiple communication channels and infinite possibilities like data sharing, videoconferencing, instant messaging, etc. Not only that, but as long as you have an internet connected device, these systems are accessible from anywhere.

Why you should switch to Digital Telephony: Statistics

  • In 2019, 83% of companies missed deadlines, lost a customer, or terminated an employee sure to communication issues.

  • Around 60% of customers prefer to contact businesses telephonically.
  •  61% of customers have stopped doing business who have poor customer service. 

The VoIP market is growing, and businesses prefer services that provide them with security.

Types of Digital Telephony:

Now moving on, let us discuss the types of Digital Telephony. There are three different types of Digital Phone systems. They are:

  • PBX On-Premise
  • VoIP PBX
  • VoIP Phone Device Hosted

Let’s learn about these types in detail.

PBX On-Premise (Fixed Phone Systems): These are the traditional telephony systems that businesses use for communication. PBX On-Premise is a device that sits somewhere inside your office premises. Everyone has a unique set of extensions, even if everyone uses the same system. These systems control all aspects like receiving calls, managing online calls, and serving them up to the correct extension. It also considers other features like transfer calls, call recording, and more.

These are robust and reliable and offer necessary sets of features to businesses. But with time, the use of these systems is becoming less and less common. And these conventional systems are rapidly being replaced by VoIP PBX systems.

VoIP PBX (Cellular Phones): VoIP PBX or VoIP phone systems are improved or upgraded versions of conventional telephone systems. The main advantage of VoIP is that these systems use broadband or data link to make or receive calls. In these systems, the microphone picks up the caller’s voice and converts it into digital information. Now, this information gets transferred via radio signals to a receiver. Each network has a range of unique frequencies, which helps the accidental mixing of calls. These systems offer:

  • The better and higher call quality
  • Allow users to make free calls
  • Users can use one device for multiple sites.

VoIP PBX works as follows:

  • All analog phone calls convert into digital signals 
  • The digital signals are translated or transmitted into Internet Protocol (IP) packets.
  • The Internet Protocol (IP) packets convert into phone signals. And these signals are received at the other end.

As per stats, 82% of businesses report cost savings after moving to cloud-based VoIP systems.

Also, 94% of businesses saw an improvement in security after switching to cloud-based telephony. Not only that, according to Gartner, 50% of government organizations use cloud services.

These systems are highly profitable in terms of maintenance, setup, operating cost, and more for small businesses. The flexibility of cloud-based systems is giving more and more rise to cloud telephony.

VoIP PBX or VoIP phone system is proven to be the most crucial system in any company. These are cost-effective and provide features that make them a highly profitable option for businesses.

VoIP Phone Device Hosted (VoIP): These are the most flexible and modern telephone systems.

The model adopted by VoIP Hosted is unique, and instead of using the box-looking device, these systems take all the calls to the cloud.

These telephone systems use cloud telephone platform systems and convert all the calls and messages into a digital format.

These digital signals are transferred to the cloud and sent to the other end within milliseconds. An example of a VoIP service is Skype. All a user needs to do is wear headphones and a microphone to make VoIP calls.

Hosted VoIP phone device offers many benefits over On-premise PBX and VoIP PBX. They are:

  • High-Quality Voice - No white noise
  • More cost-effective than a PBX
  • More Flexible
  • Less maintenance and installation cost

Now, before moving further in this topic, let us know the statistics related to VoIP Statistics and trends for growing businesses: 

With the increase in remote work, businesses look for solutions to support their remote teams. Such requirements have increased the market of VoIP. Now, let us look at the growth stats of VoIP. 

  • The VoIP services market can reach $194.5 billion by 2024.
  • From the year 2019 to 2025, the global UC market can register a CAGR of 16.8%
  • The mobile VoIP market is supposed to reach $183.7 billion by 2027.

Other features like auto-attendant, advanced call routing, and call queuing makes VoIP a perfect fit for businesses like cloud-based contact centers. These advanced features allow your business to reduce overhead costs and resolve inbound calls. These features of VoIP provide a better customer experience for incoming calls. 

Cost stats of VoIP:

The VoIP solution can help you reduce phone bills and streamline customer service.

As per stats, VoIP has enabled companies to reduce phone costs by up to 50%. Also, VoIP can help small businesses lower startup costs by up to 90%. The cloud-based contact centers can cut the IT personnel cost by 15%.

Benefits of Digital Telephony:

A Digital Telephony system demands an investment but offers many benefits to the business.

Let us look at a few of these.

  • A Digital Telephony system does not require any extra cables and wires. The businesses may require upgraded signal processing technology, enhanced user interface, and reliable wireless connectivity as calls take place over the internet. Also, these systems are reliable and fast networks. 
  • It is easy to integrate a digital phone system with CRM, which makes communication handling easy. It allows the integration of other services like video conferencing and instant messaging.
  • It is not limited to a few features. It offers advanced features like a public broadcast system, voice and video conferencing, and a multi-function voice, video, and data system.
  • The calls can be transmitted over a single digital system and are accessible to multiple users. Also, the users can use multiple lines, remote access, screen sharing, screen popping, and more without additional phone lines. 
  • It has enhanced improvement in employee mobility. It is easy to stay connected with the remote team or employee. All the employees can meet virtually and stay connected. Also, it offers web and email integration services that keep teams updated and respond quickly. Also, these systems allow you to forward calls to your cell phone when you are not on the office premises. 
  • These systems transmit and receive data over the internet. These systems should connect to an AC power source to maintain signal strength and can also connect with the power of Ethernet Injectors that allow a signal to travel along the network cable. But before setting these systems up, businesses need to know if the network cable in your office support such data, power, or signal together. 
  • The systems like VoIP telephony eliminate long-distance charges. Companies can easily connect the remote offices that are in other countries without our worrying about the extra cost. Also, the calls within the company are free. 
  • Additionally, Digital Telephony systems offer advanced functionalities like voice mail, paging systems, all blocking, automated assistance, ID system, call recording, custom greetings, schedules, etc. Businesses can customize these systems as per their needs.

How to set up a Digital Telephony?

Setting up a digital phone system is cost-effective. The cloud-based VoIP systems cost less as you do not have to secure space to install any hardware infrastructure.

The equipment needed for this service includes:

  • A VoIP telephone system lets you connect to the computer or an adapter. 
  • You need to choose a VoIP service provider company.

A cloud-based VoIP system does not require an on-premise server setup. You can add users to expand the business. Also, internet and VoIP providers have flexible plans. You can add features and upgrades to meet your business requirements.

How to choose a Digital Telephony system for your business?

Every business has its requirements. And different business needs different type of communication system. So, there are a few things that every business needs to consider.

  • Scalability: The number of business telephone lines depends on the growth of a business. Some businesses may rely on dedicated lines, while others may need a line per department. 
    So businesses need to understand their requirements and can decide how many dedicated lines are sufficient for their business.
  • Technology: Before setting up a digital telephony system, businesses need to focus on the flexibility of digital telephony systems so that the latest technology and advancements do not cause any trouble.
    Also, you need to know what equipment is required to use a particular technology with digital telephony. For example, audio conferencing needs microphones to enable multiple users to connect in real time.
  • Features: What features a business needs depends on its requirements. Businesses need to know the objective associated with communication systems. Most companies require PBX systems for their call management systems. Furthermore, if business needs more advanced features or detailed analytics of every call, they can opt for VoIP phone systems.
  • Bandwidth: Bandwidth is another crucial criterion that businesses need to consider. Bandwidth determines the number of data packets transmitted over the network at a given time. The larger bandwidth is more reliable as more data packets are transmitted. Digital Telephony systems like VoIP run along ethernet cables. The computers use ethernet cables to send emails, store information, and more. So, always check your bandwidth. A lot of traffic can affect your performance. If your network has less bandwidth, your production will slow down.
  • Maintenance: The authoritative person can only handle Digital Telephony systems like VoIP phones. So these systems need less maintenance. These can be maintained remotely without any external interference.

Final Thoughts

Digital telephony systems provide businesses most secure, scalable, and flexible ways to communicate. These systems ensure maximum uptime, which helps industries to work efficiently and enhance productivity. But before deciding the type of digital telephony you want t use for your business, you should consider asking experts, as no one can guide you better than experts.

We at jiPBX have a team of expert developers with sound knowledge of Digital Telephony systems. Our developers have helped businesses across the globe and have provided them with the best Digital Telephony system services. So, if you are looking to implement Digital Telephony systems for your business, JiPBX is here for you.