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NEC Phone Systems: On-Premise PBX For Your Company

nec phone systems

If you are new to the business world or just looking for better telephone system options for your business, you have undoubtedly learned how vast your options are. Looking for a phone solution for your business can be confusing. In this article, we explain what on-premise PBX (Private Branch Exchange) systems, like NEC phone systems, are. Plus, you will learn the difference between on-premise PBX and Hosted PBX and which may be the better solution for your business. 

PBX, What is it?  

PBX is what companies and organizations use as their telephone system.  This private network can be used with both internal and external phone calls.  With a private telephone network, companies can dial extensions to reach coworkers instead of longer, traditional phone numbers. As a business owner, you have two options when it comes to the type of PBX your company will use. You can choose to go with an on-premise PBX or Hosted PBX. 

On-Premise PBX 

On-premise PBX is installed at the location of your business. The hardware for the system needs to be housed on site in a phone closet or in a computer equipment room. Your server, router, and phones all connect to your phone service provider. 


Features of on-premise phone systems are the same as a cloud-based systems.  They are reliable and secure.  Traditional features that you will enjoy when using on-premises phone systems include but are not limited to voice calling, call forwarding, intercom, collaboration/conference calling, auto-attendants, hold, transfer, call park, voicemail, and call recording. 


Benefits of on-premise PBX over Hosted PBX include less monthly spending, SIP trunking capabilities, ownership and so much more. When buying NEC phone systems or any other on-premise PBX, you often make the purchase upfront. When purchasing the system upfront, you will eliminate the need to pay monthly service fees associated with a Hosted PBX system.  Also, once you make this upfront purchase, the hardware is yours to keep forever. Overtime, this big purchase could save you money over the monthly charges of a hosted system. 

When you make the decision to purchase an on-premises phone system and have complete ownership, you have ultimate control of your setup.  While continuing with your current phone service carrier, you can add and delete users as desired. You typically do not have to pay additional license fees, and ownership of your server means you can save on expenses over time. 

NEC phone systems are a brand of on-premise phones that can be IP-enabled to allow for some unified communications functionality. In order to utilize this capability, you will use a sip trunk. Sip trunks connect your phone system to the internet to enable them to make VoIP calls while also helping your business save on calling costs. If you are on the fence as to whether you would like an on-premises or Hosted PBX, an NEC phone system might be a good option for you. You will have the capability to run your system via POTS (Plain Old Telephone Service) lines. If in the future you’re looking to switch to hosted PBX, the upfront cost will be less than that of an on-premise solution. 

NEC phone systems

Hosted PBX 

Contrary to NEC phone systems, with Hosted PBX the only equipment needed on site is the actual telephones.  These phones keep you connected from anywhere, as long as you have an internet connection, thanks to their cloud-based nature. Hosted PBX requires a broadband connection which may require you to adjust your network settings. Cloud-based phone systems have the same features as their on-premise counterparts. 

Hosted PBX is the more affordable up-front option for a business looking to save on initial costs and instead pay a monthly subscription. You don’t have to worry about upkeep or having the space to store large equipment, because it is all kept by your service provider. Your team can work from anywhere while still accessing the same great communications. It is scalable and easy to update/upgrade as needed and designed to fit into any sized business’s needs, ideal for a small or just starting out business. 

Unitel has the NEC Phone Systems You are Looking For  

Along with our cloud-based phone services, Unitel is proud to provide the NEC product suite for your business.  Not only do we provide the best in on-premise phone systems, but we also maintain the system for you. If you are looking for a phone system that is reliable and packed with easy-to-use features, our NEC phone systems are for you.  

If you would like to learn whether an on-premise or hosted solution is right for your business, Unitel can help! We are your communications experts, and it is our goal to provide your business with the solution that best fits your needs. Ready for some feature-packed calling? Call us today at (508) 580-2500!