A form of business VoIP services where the VoIP equipment, servers and services are hosted by the VoIP provider, which manages calls and routes them to and from the subscriber’s existing telephony system and equipment. Hosted VoIP is also frequently referred to as managed VoIP and can save companies from the potentially expensive costs of having to invest in VoIP equipment and manage the system.
As with all VoIP (or Internet telephony) solutions, hosted VoIP services usepacket-switched telephony to transmit calls over the Internet as opposed to the circuit-switched telephony used by the traditional Public Switched Telephone Network (PSTN), although in some hosted VoIP cases calls from the subscriber are routed over the PSTN to the hosted VoIP PBX system.
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Recommended Reading: The Difference Between VoIP and PSTN Systems.