15 Common Hosted PBX or Internet Phone Terms which Every Small Business Should Know

If you run a business or planning to open one, the top priority should be to adopt most efficient solutions to make your operations successful. To maintain business’ smooth flow of communication, it becomes pertinent to have  internet accessibility and  strong virtual phone system. Cloud phone system can serve as the best option to stay abreast with revolutionized phone technology.

Here are fifteen common hosted PBX or internet phone terms you should know as a business owner.

Virtual Number

This is basically a telephone number that has no attributed phone line. Such numbers are intended to be redirected to a VoIP (Voice over Internet Protocol) service or into a distinctive mobile/fixed phone line. At times, VN is collaboratively used with mail-sending services in order to come up with a remote location.


With today’s innovation in the telecommunications industry, even telephone conversations can be routed online or via any types of IP-based networks. This is referred to as VoIP. Protocols/codes that are utilized to convey voice messages through IP-based networks are generally called VoIP protocols. Such protocols carry a digital audio format of telephony signals, which data rate is reduced by means of compressing the speech data.


Session Initiation Protocol is used as the protocol for the VoIP as well as some other multimedia and text data, which include (but are not bound to) video and text messaging and internet games. This can be compared with the SMTP or the HTTP web protocol. Such messages incorporate headers and a body. When it is a phone call, the body of the message is referred to as SDP (Session Description Protocol).


DID (Direct Inward Dialing) is used in association with the PBX systems that the client has. This allows the telecommunications provider to set of figures interconnected to the client’s PBX. When the PBX receives a call, the caller’s dialed number will also be provided. In turn, the PBX technology can redirect a call to a person within the company.

TCP / IP – Transmission Control Protocol/Internet protocol

These are among the earliest identified networking protocols. This integrates with today’s Internet and Local Area Network (LAN) system. It aids in linking networks in a single server.


Bandwidth is the maximum rate of data transfer of an internet connection or a network. This measures that amount of data that can be conveyed over a particular connection vessel in a given time.


This is a gadget that identifies the specific travel path of the information among several networks, and then forwards the data to another device connected in the path. A router links networks such as LAN-to-WAN together to obtain internet accessibility.

PSTN – Public Switched Telephone Network

PSTN is the global public circuit of switched telephone communication systems. Nowadays, PSTN is completely in its digital data form. ITU-T manipulates the technical requirements of PSTN and utilizes telephone numbers to make an address.


LNP (Local Network Portability) deals with the capacity to move a current mobile or fixed-line phone number (set by the Local Exchange Carrier) and redirect it into a new carrier. Most of the time, transferability depends on the technology used as well as the geography.


This device connects a computer into networking system. It can verify received data files and identify the source as well as the destination which results to accurate data forwarding. Due to its accuracy, network bandwidth is conserve, thus making it a better option as compared to a hub.


This software makes ‘internet telephone calls’ possible. Instead of using a typical telephone, a caller can use a computer.

Data Center

This is a central repository (can be either virtual or physical) that enables management, storage, and data dissemination within a particular organization.


PaAs (Platform as A service) is a type of cloud model enables online delivery of apps. Apps may also be delivered on the user’s software and hardware infrastructure.


Cloud (or cloud computing) refers to anything that deals with online delivery of hosted services.

Unified Communication

UC refers to a single platform that interconnects telecommunication solutions altogether. It includes audio conference, desktop sharing, SMS, call routing, and much more.

Know more about these and let your small business grow soon.