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Small business phone systems are used by small to medium sized companies to meet their communication requirements. Telecom industry finds it difficult to deal with needs of small firms and home-based businesses, as it may not be economically viable to provide service.

Over the last few years, telephone systems have grown technologically by leaps and bounds. However, for the most part, small businesses do not have enough resources to invest in ever-changing newer features. With recent introduction of Voice over IP telephony, the gap between small business needs and products available in the market appears to get wider.

Over the years, emerging technologies have been able to produce equipment at lower and lower costs. Introduction of new features are simultaneously resulting in price reduction for most office telecom equipment. However, full-featured phone systems have remained largely out of reach for small companies due to large infrastructure to be cost effective.

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The prices for small telephone systems have not decreased as rapidly as those for other office equipment. Most small companies have no choice but to develop their own telecommunication systems with a patchwork combination of multi-line telephones, answering machines and expensive telephone company services.

Larger phone systems are far more powerful, offering features such as flexible automated call answering, call messaging and call routing that can improve a company's professional image, substantially reduce communication costs and increase connectivity and efficiency. Small businesses are considered as the vanguard of a country's economic growth. Needs for advanced phone systems by small businesses are definitely as important as those of its larger counterparts.

Most small businesses in United States have been using a normal single line telephone. Obviously, a big market exists for state-of-art small business phone systems with five to twenty lines.

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Lately some small business telephone systems have appeared in the market. However, these are mostly scaled-down versions of the larger telephone systems and still remain too expensive for small business budgets.