A Comprehensive Guide to Understand Business IP Phone Systems

IP Phone Systems

The rise of Telecom industries in recent years has been at an exponential rate. The evolution per se has been in three different phases, from the Traditional interface (FXO/FXS) to the Digital Interface (T1/E1 PRI) and the latest VOIP (3G/4G/VoLTE). VOIP usage in the USA, according to Statista and Tech.co,  has seen an abrupt rise in just a gap of 8 years.

While residential adoption of VoIP services remained high, small and mid-size businesses too saw a large surge in adoption of VoIP in recent years.

Scope of IP phone systems in India

According to Financial Express, there were 79.27 lakh MSMEs in India as of March 27, 2022. Due to their inherent potential, these MSMEs are expected to outperform in the coming years. Of these growing MSMEs, many of them, at least, might still be dependent on Traditional telephony (Analog & ISDN). Thus, making their systems redundant as modernization grips the sector over time.

In order to expand and grow, these MSMEs do need traditional systems to be upgraded. MSMEs due to budgetary constraints might be averse to giving away legacy systems. The Media Gateways can be the solution here as it can be well integrated with legacy systems and act as a bridge between Traditional and Modern interfaces.

Business IP phone systems: About

An IP (Internet Protocol) system uses the internet to exchange information. These IP systems include a range of products like VOIP gateway, IP-PBXs (Private Branch Exchange), End terminals, etc.

Whereas traditional systems use PSTN as fixed line communication which has a dedicated infrastructure. Thus IP systems are flexible and scalable as compared to Traditional systems.

7 advantages of IP phone systems


The most important benefit of IP systems is that scaling becomes much easier. It means that VOIP can accommodate more communication needs without overhauling existing systems ensuring that your investment becomes future-proof. Additionally, VOIP uses up less space pertaining to your infrastructure due to its wireless nature.


Employees that are on the move can stay connected and exchange information from anywhere and anytime using IP systems. By using softphones and integration with hard systems employees can make the best use of mobility solutions.


A variety of functions are supported by IP telephony, including Teleconferencing, Voicemail to Email transcription, and IVR (Interactive Voice Response), which let employees operate more productively. This effectiveness may translate into increased employee and organizational productivity.

Unified Communication

Multiple enterprise communication tools, such as phone calls, video conferencing, instant messaging, presence sharing, etc., are integrated through unified communication. Traditional telephony is restricted to voice calls, whereas IP telephony allows you to communicate via the internet, video, and audio over a data network. The communication between employees and employers may be aided and facilitated by this.


The pricing structure of internet data has grown competitive in recent years. As a result VOIP service has grown more affordable. In addition, VOIP telephone requires less infrastructure than traditional telephony, which lowers maintenance expenses.


The capabilities of IP phones go beyond just calling. IP has an advantage over traditional telephony thanks to features like video calling, video conferencing, Instant messaging, presence sharing, etc.


The information that is traveling through the internet has fewer transmission losses as compared to the traditional ones. Also, the quality of data traveling relies on the quality of the internet and its bandwidth.

Their challenges!

Internet Service Provider (ISP)

The users can witness issues as a result of maintenance, upgrades, etc. from the ISP’s end. This can impact VOIP-based communication systems.


The power source used for VOIP is drawn from the wall socket. In case of a power outage and in absence of a backup power source, the entire communication system can experience shutdown.

Thus, VOIP systems are vulnerable to traditional power sources unless backups are provided.

However, this does not detract from the potential of IP telephony systems in India.

Matrix Comsec, as a leading telecommunications company in India, has been serving the telecom industry for over 30 years. The expertise of Matrix in Telecom products and solutions has benefitted both private and public sector enterprises in the country as well as globally over the years. You can also refer to our blog on things you need to take care of before buying IP Telephony systems. Contact us for more information on our telecom products and solutions.

FAQs (Frequently Asked Questions)

Elaborate on the difference between IP Telephony and PSTN.

The basic difference between IP and PSTN is that of infrastructure.

PSTN requires dedicated infrastructure as compared to IP which is much more flexible. Also, PSTN (Public Switched Telephone Network) deals with dedicated circuit switching for information transmission, while IP telephony deals with information transmission in packets with the internet as a medium.

Can IP phone systems be integrated with PSTN?

Media Gateways enable the integration of IP phone systems with conventional networks that is PSTN. These devices transform TDM (Time Division Multiplexing) voice through PSTN into data packets for IP Telephony.        

State the difference between SIP (Session Initiated protocol) and PRI (Primary Rate Interface) Trunks.

SIP and PRI are two distinct communication methods that link your company to the PSTN. SIP sends information over the internet, whereas PRI sends it over a specific physical link.

What is the difference between T1 and E1 PRI?

ISDN (Integrated Services Digital Network) has two access methods: T1 and E1 PRI. They vary in terms of the number of channels they support and the area in which they are used.

A typical E1 channel consists of 30 “B” channels, two “D” channels, and one time and alarm channel. E1 channel is used in most parts of the world.

PRI service is provided on one or more T1 carriers in North America (often referred to as 23B+D).