For over 100 years the only possible way to carry on a conversation over a long distance was to use the regular telephone lines. The problem is that for every user, a business would need a separate telephone number. These numbers are costly for any large company and can be difficult to manage. The difficulty lies majorly in the lack of extendability of the system itself. For example, if you have purchased the a class of numbers, and would like to assign a block to a specific department, once the whole block is consumed, you could no longer provide a number in the same range. Think of it as a city street. Once you have built and numbered the houses, it would be difficult to add another number in-between the already built houses. The only solution is to either re-number every single house, or to provide the new house with a number outside the regular range.
For this reason, extension addressing was a primary feature when the VOIP protocols were established. The current addressing allows for a company to address any amount of extensions to its users as well as make it transparent to the customers. This comes as a huge benefit to companies that no longer need to have a dedicated employee solely for its communication system. The addressing is done automatically by the PBX (Private Branch Exchange).
This is one of the many reasons why Voice -Over-IP has had a tremendous success with business implementations. A company could use a single phone number and re-route all the calls to extensions. This is in fact a very popular way of attending to customers through numerous departments. Other features such as the auto-attendant will allow the customers to direct themselves to the particular department and not having to speak with a costly concierge or a receptionist. The VOIP technology has increased in popularity through the business world. But un-surprisingly residential customers are ditching the old system and joining the VOIP world.
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