Recently there has been an upsurge in articles about the benefits of hosted VoIP for SMBs accompanied by a similar upsurge in providers who offer such services.

While I understand most of the benefits highlighted, especially if the SMB is geographically dispersed; I can't seem to resolve one nagging dilemma in my head:

Calls between local extensions situated within a physical location (a cubicle across the hall) must traverse over WAN. Isn't this very inefficient? And, doesn't it require a much higher WAN bandwidth, which is usually limited and expensive - very expensive in some countries?

So, for a 20-user SMB with all its users located in a single office, all extension-to-extension (local) calls must go out on a WAN and come back to the office. This will require a much higher scarce WAN bandwidth and not use the abundant LAN bandwidth!

Would hosted VoIP be a better choice such an SMB?

I would appreciate your thoughts on this issue to help sleep well :)

Thanks.



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