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Home/Resources/Article

Business phone system FAQ

Vitaliy V.

Marketing at @CapitalPBX

Published
August 10, 2026
Contents
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A phone system is what handles a company's calls: it picks up calls on the business number, routes them to extensions or departments and connects them to the public telephone network. There are three main types: analogue, digital and virtual, meaning cloud PBX, which is the type CapitalPBX provides. Below are answers to the most common questions about each type, about capacity and about cost.

Contents

  • The analogue phone system
  • The digital phone system
  • Systems with 50 extensions
  • What a phone system costs
  • Where to start

What is an analogue phone system?

An analogue phone system is a physical device installed at the company's premises, connecting internal phones over classic analogue lines. Capacity is fixed: however many ports the box has, that is how many extensions you can use. The technology still works, but expanding it requires new hardware, and access stays tied to the office. Many companies keep theirs until the first expansion or office move, then switch to a virtual phone system.

What is a digital phone system?

A digital phone system transmits voice as a digital signal, through dedicated equipment installed at the company's premises. It is the step after analogue: more features, the same dependence on hardware. Capacity stays limited by the equipment, maintenance happens on site, and access depends on the office. The modern version of the same idea is the virtual phone system, hosted in the cloud and administered from the browser.

Are there digital phone systems with 50 extensions?

Digital systems with 50 extensions do exist, but at that size the physical limit becomes visible: every expansion means new equipment, installed and maintained on site. In a virtual phone system, capacity no longer depends on a box on the wall: you add users as the team grows, with no new hardware investment. For a setup that large, request a custom quote calculated on your real number of users.

What does a digital phone system cost?

The price of a classic digital system depends on the equipment, the number of extensions and the installation, so it varies a great deal from one project to another, and annual maintenance comes on top. A virtual phone system replaces the upfront investment with a predictable monthly subscription that grows with the team rather than with the equipment. The full grid and the price calculator are on the pricing page, the only page that keeps prices current.

Where to start

If you already have an analogue or digital system, the first step is a simple inventory: how many extensions you actually use, who answers the calls and what maintenance costs you per year. The second step is to compare that cost against a monthly cloud subscription for the same number of users. SIP compatible IP phones can be kept, so the switch does not mean throwing away everything you have.

Talk to a CapitalPBX consultant for a calculation based on your company's situation.

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