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Business Phone Buying Guide

By Robin Wilding

Buying a business phone system gives you plenty of questions to ponder...what capacity do I need? How feature-rich does my system need to be? What is the meaning of life? OK, maybe the decision isn't quite that existential in nature, but plenty to ponder nonetheless.

When buying a phone system, there are essentially two things that you need to ask yourself: how much is my budget for this and what class of system do I require? While your budget may dictate the type of phone system you buy, you should still try to find one that best suits your needs. Luckily, there are only a few different varieties of business phone systems (the number of vendors is where you reach the triple or quadruple digits).

There are three major classes of commercial phone systems: PBX (Prviate Branch Exchange), key systems, and KSU-less systems. The type of system you buy will be dictated primarily by the amount of extensions you will need, the types of features you require and of course your budget.

KSU-Less Systems

If you have 10 employees or less then a KSU-Less system will suffice (unless you for some reason require advanced functionality). These systems are similar to the other two business phone systems, but don't require a centralized unit like KSUs or PBXs. They also require a smaller initial investment. With these units you still have extension-to-extension capabilities but this type of system isn't wired into your building, so it can be moved from location to location. This makes them ideal for businesses that aren't glued to their current location. You will want to find a system compatible with your current handsets and wiring in order to keep your costs down. There likely won't be any installation costs as you can purchase, install, program, and maintain the units yourself.

While KSU-less systems are the most affordable option they aren't customizable and will not grow with your business. With KSU and PBX systems dropping in price due to increased vendor competition you may want to scope out your other options before deciding on KSU-less.

Key Systems

Key systems are generally chosen by companies with up to 40 employees (beyond that a PBX system would generallymake more sense). Key systems are centralized with a key system unit (KSU) and provide additional features not available on standard phones installed by your local phone company. The difference between this system and standard phone systems is that you gain valuable features like extension-to-extension calling and private calling (where only one user can gain access to the phone line—preventing others from accidentally connecting to a line that is in use). Key systems require professional installation and generally are out-of-the-box solutions without customization options. There are solutions on the market however that are hybrid key systems that incorporate more sophisticated software; these hybrid systems can give access to PBX-style features.

PBX

PBX systems are generally used by companies with more than 40 employees and by companies that are looking for a richer set of capabilities. Standard PBXs come with a wide variety of telecomm intelligence features and are customizable. The PBX units themselves have begun quite small, small enough to fit on or under a desk or in an IT storage cabinet. PBX systems are more expensive than key systems, but you get what you pay for with their business-class features and customization options. These systems require professional installation and maintenance, so when shopping for one ensure that the vendor includes the cost of installation and on-going service in your quote. When having the system installed try to use your current wiring if possible—to avoid the high costs of re-wiring (which can cost as much as the PBX itself). Keep wiring costs low as you will likely need to buy new handsets.