Glossary of Terms
- Virtual PBX
- A business phone system that has no physical connections such as wires and equipment. It is instead hosted by the service provider, and is therefore more affordable than a traditional PBX system. Small businesses opt for virtual PBXs to save on costs required for hardware purchases and maintenance. A virtual PBX system delivers functions and features such as call forwarding, multiple extensions, voicemail and other call management tools.
- IP phone
- IP stands for Internet Protocol. Simply put, an IP phone uses the Internet to enable voice communications between people in different locations. It works with a special IP telephone unit which converts voice into IP packets and transmits them through a virtual PBX system.
- Local number
- A local number is a geographical number. It contains an area code which corresponds to a state or city. When you use a local number, calls made to numbers with a different area code from yours are charged long distance.
- Toll free number
- A toll free number is a special kind of number in which the party being called is charged instead of the caller. Toll free numbers start with the prefixes 800, 888, 866 or 877 and are followed by a series of random numbers. A vanity toll free number is one that spells a word or a phrase and is therefore easier to remember.
- Minutes
- An office phone system’s pricing plan may or may not include a certain number of call minutes. If, for example, your pricing plan includes 100 minutes, then you will only be charged from the first minute beyond the 100 minutes included in your plan. Charges differ from one service provider to another.
- Setup fee
- Most virtual PBX service providers waive the setup fee and even offer free trial period, giving you a risk-free test run on their phone service
- Hosted PBX extensions
- With a virtual PBX, you can set up extensions anywhere in a single location and even in remote offices. Depending on the pricing plan you choose, you can add a certain number of extensions depending on your needs and preferences. Each extension is connected to your phone system through your service providers’ remote system.
