A hosted phone system is necessarily a cloud-based phone system. It is therefore hosted off-site and over the internet, instead at the physical location of a business. This cloud hosted phone system as a result helps in cost savings and fewer maintenance. A Hosted PBX Phone System, commonly referred as the PBX, is an office telephone-system that provides business with hosted phone services such as call transfers, call holds, call-parks, call waiting, auto-attendant, voicemails, etc. By hosted, it refers to that it is provided by a third-party that hosts the phone system. Thus the name, voip hosted phone system. How does Hosted PBX service work? Hosted PBX is based on Voice over Internet Protocol (VoIP) that is a method in which a voice is digitized and then transmitted in digital packets. This mechanism replaces the traditional copper phone lines of the public-switched telephone network (PSTN). Most telephone networks around the world are converting to VoIP. What are the benefits of using Hosted PBX? With hosted phone systems, comes a number of features and benefits for the hosted voip phone systems for small business:  a) With easy installation process phones plug into your existing LAN b) Due to its portabile nature phones can be moved to a new office without hassle, c) Use your PBX across multiple sites, enhanced features like call transfers, call holds, call-parks, call waiting, auto-attendant, voicemails, etc. d) A hosted phone system in UK, gives you the ability to scale up or down quickly as per the demand e) Removes the extra costs regarding setups, maintenances, and upgrades f) Empowers you to add new features and replace previous features without facing an additional cost g) Provides lower hosted phone system pricing in comparison to a traditional PBX