The Evolution of Phone System in Business

the evolution of business phone system: a detailed history

Table of contents


Exploring history, there has been a massive crossover with modern technology in the evolution of phone systems in business. It has evolved from a wire-based telephone to an advanced VoIP service provider.

In 1874, Alexandar Graham Bell figured out the telephone concept, and in 1869, he granted a patent for the first telephone. Before telephone, in the 1804s, Francisco Salva Campillo invented the first telegraph, and in 1816, Sir Francis Ronalds invented the working telegraph. This idea of the telegraph provided the concept for the telephone. Although it is not in use today, it definitely changed the whole communication system.


Early Inventions - Telephone System

In earlier days, there was a telegraph to communicate using Morse Code. It was used in railway stations, post offices, government ministries, and the largest enterprises and could only transmit one message at a time. In 1874, Alexander Graham Bell discovered that multiple sounds or data could travel simultaneously through the same wire used in Morse Code.


After the research, Bell started working on a multiple-message telegraph. Through his research, he found that the sound of human speech could be converted into an electric current, and the sound at the end of the line could be decoded, which resulted in the invention of the telephone.

Inventions date in the early days :
 

Date

Invention

1804Francisco Salva Campillo constructed the telegraph.
1816Sir Francis Ronalds invented the first working telegraph using static electricity.
1847Alexander Graham Bell figured out the basic features of how a telephone should be able to function.
1876Bell received legal permission to use the first telephone.
1880Telephone systems expanded, enabling long-distance calling.
1890The candlestick phone, also known as the desk stand phone, was invented.

Transformation From Rotary Dial Phones to Business Phone System

The business phone system has transformed from the rotary dial phone to the latest VoIP phone system. The rotary dial phones (the 1920s-1960s) enabled direct dialing and made phone communication accessible for businesses before the introduction of the PBX systems. With the new research and innovation of technology, the VoIP phone system was introduced in late 1995.

Rotary Dial Phones

The rotary dial phone, also known as pulse dialing, was introduced in the 19th century. These phones used a circular layout with finger holes for each digit (0-9). To operate this phone, people place their finger in the hole for the desired digit to dial a number and rotate the wheel. When it releases the wheel, it returns to its starting position.

After that, it creates a series of electrical pulses sent to the telephone, which decodes them to connect the call.

Touch-Tone Phones

With the innovation and use of new technology, the rotary dial phone took a backseat, became less critical, and transformed into the touch-tone phone, which came with an upgraded calling feature.

The touch-tone phone system is a telephone that has buttons or keys to dial a number. It was popular between the 1960-1980s.  It made the dialing process easy and quick with a speed dialing feature. This phone system was suitable for small businesses where only a few users could make a call. The users could control the system’s functionality, manage call volume and direct calls, provide better customer service, and improve call routing.

PBX Phone System

With the limited call feature in the touch-tone phone, the PBX (private branch exchange) system gained popularity in the 1960s. It had more upgraded features than that of the touch-tone system.

This system allowed multiple internal telephones within an organization to share limited external phone lines. It serves as a private network for the organization, managing incoming and outgoing calls. The primary purpose of this system is to save the cost of the telephone, with its unique features like call forwarding, voicemail, and conference calling.

Cloud Telephony

The cost of maintaining an analog PBX system was significantly higher because it requires a good investment in physical hardware, maintenance, and updates. This was one of the other reasons for the introduction of  Cloud telephony in the history of the business phone system. Cloud systems operate through the internet, typically have lower maintenance costs, and don’t cost much regarding physical infrastructure. It utilizes VoIP technology to transmit data and voice signals via the Internet. So, it is quite similar to VoIP but differs in infrastructure, features, and cost structure.

VoIP - The Modern Business Phone System - How it Works?

The modern business phone system has made communication easy. VoIP is an example of this. It functions as a software service within a computer or mobile device. These phone systems use internet protocol to transmit digital information stored over the internet. The software controls the hardware components’ operation and responds to user actions by transferring the actual media in the call, such as audio, video, text messages, files, etc.

Why choose a VoIP Phone System?

Among the many options for the business phone system, a VoIP phone system is more effective for business communication. It makes communication secure with its advanced security encryption.

Many businesses use this system for advanced VoIP features and benefits for organizational use. Some of the key perks of using a VoIP phone system include the following:

Cost Saving: In every business, you must consider the price for your budget management. Compared to traditional telephone service, VoIP has lower communication costs as it utilizes the same network for data and voice transmission. It significantly reduces your operational costs.

Flexibility and Scalability: Using a VoIP service makes the call flexible and scalable. It doesn’t require a separate hardware device to make the call; it is programmed software installed on your computer or smart devices. Moreover, it has a feature that supports multitasking, like sending documents, images, and videos while calling.

Communication Features: VoIP is a time-saving communication tool that provides many advanced features. Call management, data and voice optimization, call routing, messaging texting, and call and performance analytics are to name a few.

Conclusion

The evolution of the telephone started with the telegraph, moving from a wire-based phone to a modern VoIP phone system. Throughout history, many innovations have been seen, from Morse codes, switchboards, and candlestick phones to the rotary dial phone, which has additional features. Furthermore, the introduction of the PBX system and then the rise of the cloud telephony system completely changed the telephone phone system for better communication.

Today, many VoIP phone service providers offer cloud telephony systems to increase the organization's productivity. There are many alternative service providers in the market; consider Calilio for the best service at an affordable price. With Calilio, you can purchase VoIP numbers from more than 100 countries. Contact Us today to upgrade to the latest advancements in the business phone system.

Frequently Asked Questions

What is the history of PBX?

The idea of the PBX originated in 1980 when companies used switchboards to route calls, answer phone calls, and plug the circuit into the correct jack through the operators. This complicated process led to the creation of PBX systems to cut costs by allocating a dedicated telephone network to the organization. Furthermore, it took a significant step forward by introducing features such as dial tone, call transfer, auto-attendants, and hold music features.

What are business phone systems?

A business phone system is an organization's telecommunication network that receives and sends calls to manage incoming and outgoing calls using different telephone services. This system is of various types, such as traditional landline, VoIP, and cloud telephony.

When did automated phone systems start?

Automated call switching started in the 1980s. Before, the operators used to route phone calls using switchboards. Later, Almon Brown Strowger developed the “Strowger switch,” the first automatic system for connecting phone lines without a human operator.


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