Finding the Best Telecommunications Platform - Part 1

Companies still need person-to-person communication to connect with other businesses for quick solutions or complex communications. To help you understand the platform you are currently using or considering replacing, we provide an overview of the three most used VoIP platforms and their advantages and disadvantages. Before delving into that, here's a quick overview of the history of phone systems.

Logo is for AT&T Inc.

A Brief History of Phone Systems:

Before the advent of Private Branch Exchanges (PBXs), AT&T charged a flat rate for each hundred extensions, regardless of usage. For instance, the average cost for a business phone line was between $20 and $50 per month.

That meant a sample company with one hundred phones was charged up to $5,000 monthly.

In our sample company, only fifteen phones of those hundred extensions were used at any time. Two companies, Nortel and ROLM, created a product (PBX) that acted as an intermediary between AT&T's network and the phone stations. Using a PBX allowed the company to order just twenty lines (with five extra as backup) instead of a hundred, significantly reducing costs while still providing adequate service.

Nortel logo is for Nortel networks Rolm logo is for ROLM Corporation

The new cost for our sample company to AT&T would now be $1,000 monthly, providing the same level of service.

These platforms have continuously evolved over the last thirty years, transitioning from traditional systems to VoIP and wireless technologies. Some have even incorporated AI for maintenance and enhanced features.

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