Businesses need a better communication system for the efficient transfer of messages or information, whether from one department to another. It also creates a better user experience for customer interactions within the business. 

With the VoIP Phone Extension, this is possible to create an effective communication system for businesses of any size. This phone extension enables the firm to connect with its customers and agents. Also, internal communication within multiple teams, departments, and employees.

In this blog, we take a closer look specifically at VoIP Phone Extension and how it works, as well as some differences with phone numbers, lines, and extensions. Also, Phone Extension best practices.         

What is a VoIP Phone Extension?

What is a VoIP Phone Extension

VoIP enables users to make or receive calls over the Internet. Similarly, phone extension enables businesses to make both Internal (Teams, employees, and departments) and external (between employee and customer: For customer service) calls efficient.

Phone extension is a short digit number added to your business primary or main number, which is assigned to specific teams, departments, and employees within the business, enabling call makers to instantly connect with a right and desired person or party instead of forwarding calls or routing them to an auto attendant or specific destination.

In VoIP, a Phone extension is more cost-effective, reliable, and convenient than a traditional telephone. Giving better call quality experience even during long distance or international calls. Also enables users to receive or make a call with internet-connected devices such as smartphones, laptops, and tablets. 

If your business needs a VoIP service, contact us. Also, you can check our pricing.

How does Phone Extensions Work?

If you want to facilitate your business with phone extensions, then you need a phone system that supports them. 

In phone extensions, 4, 5, or even 3-digit numbers in VoIP phone extensions are attached to your main business number and directed to your employees, agents, and departments, saving valuable time by connecting the dialer instantly to the wanted party without wasting minutes by doing call forwarding.

There are two types of Phone Extension systems:

  • PBX System and
  • VoIP System

PBX System: also known as Private Branch Exchange, enables both external/internal voice calling for business by use of a private local telephone system. Where the assigned extension phone line automatically directs the caller to the dialer extension line. It is a centralized phone system for businesses. Remote devices and employees cannot use this service in this system.

VoIP System: also known as Voice Over Internet Protocol, it also enables both external/internal voice calling for business and extension service through the Internet instead of traditional telephone lines. Not only telephones but also other smart devices that have internet access are supported. If your business needs to make long-distance calls, then it is more beneficial and cost-effective. Remote employees or devices can also access this system as long as they use an internet connection.

If you use a VoIP System, then you can have an advantage and flexibility with a remote location and multiple devices, unlike the PBX system, which uses a centralized communication system. 

Differences Between a phone number, line, and an extension

A phone number is a unique digit that allows users to connect together for voice communication. 

A virtual phone number is also called a VoIP phone number that makes and receives calls through the internet.

Both Analog and Virtual can have unlimited extensions that can be made with the help of a phone line. It is a connection between the two user ends that provides audio calling with multiple parties. we can see the wires in the streets for the telephone line. For business, the analog line can be both costly and complicated for phone extensions.

Extensions help to connect the dialer to instantly connect with the desired and relevant party within the business that is associated with your main business number. This makes the communication system effective for both customers and employees. 

VoIP phone extensions enable employees to receive and make calls remotely and make telephony systems decentralized for your business.

Why do you need a Phone Extension Cable?

Different devices use different types of cables according to needs. You may wonder why we need cable for phone extension. 

If You have a phone extension cable, then you can move your phone to any corner of the house or office without losing a signal. It helps to maintain a reliable signal for your calls.

It also helps you to connect multiple phone lines without getting new ones. Also, it establishes a good call experience by erasing waiting period communication between two parties.

Benefits of Using Phone Extension Numbers

When the caller calls the phone extension number, it bypasses directly to the designated extension phone or employee, which helps to establish an instant connection with the desired party. It also maintains high customer support and a better user experience.

Also, develop a better communication system for your business. With some benefits:

Better Internal Communication: It enhances your company’s internal communication and makes it better and smoother.

Call productivity: If you want your business communication system to be productive, then you must use a phone extension number.

Better customer experience: What is more satisfying than giving an instant and valuable service to your customer?

Cost-effective: Establishing multiple extension numbers in a single phone line is definitely cheaper than purchasing a new one.

How Are Calls Routed to an Extension?

How Are Calls Routed to an Extension

Want to know how calls are routed to an extension and reach the correct ones? 

Then let me break down a process for you:

Connect your business main number: When a user dials your main number, then it is routed to the PBX system at first.

Extension identification: The PBX system identifies the extension numbers of your business once the dialer enters an extension, and then the system guides where to route the call.

Calling the correct phone line: After routing the call, it directs the call to the right phone line connected to a telephone device.

Phone rings: When the directed call is connected to the right line, then the telephone or any device that is connected to the phone line starts to ring.

Call received: Once the device rings, the available person or an employee, department, or team will receive the call.

Understanding how the call is routed, and its process gives a clear idea of how efficient and effective it is to improve any business’s communication system and customer service/support.

Best Practices for Using Phone Extensions

Best Practices for Using Phone Extensions

Here are some of the best practices for using phone extensions:

Use of short extension: Short digits make it easy for users to dial.

Keeping track of extensions: Tracking helps you analyze your extension call history and real-time, especially with missed ones and other call stats. 

Customer Review: Asking for a customer’s review of a call experience is always better.

Manage Incoming calls: During a peak hour, sometimes there is a need for a call auto attendant and manage voice traffic


Every business needs an effective communication system. And definitely, using VoIP phone extension gives the benefits of remote call handling without depending on a centralized extension system where employees and devices are limited to a private local network for phone extension. 

If the business provides a call center and customer support service, then a productive, efficient, effective, and cost-effective communication system is a must with the help of VoIP Phone Extension, these businesses can take advantage.

Dialaxy provides such cloud-based telephony services to businesses like this with 100 Plus features

With the help of the Cloud telephony system, multiple devices and any location are made accessible as long as there is an internet connection. Short-distance, Long-distance, and international calls are also more cost-effective and flexible than the PBX system.


How do phone extensions work?

When a short string digit is added to your main business phone number, this extension is assigned to an employee, team, or department when calling, an extension digit automatically directs the caller to the right destination, saving both the caller and receiver time.   

What is a work phone extension example?

Add an extension number to the end of the primary number. For example, If your business primary number is 553-0000 and your extension number is 1111, then your work phone extension number would be  553-0000-1111.

What is the difference between a phone number and a phone extension?

The connection between a phone is called a phone line. But a phone number is an address for your phone line, which allows the user to dial at the correct end.

What are extensions in VoIP?

A VoIP extension is a virtual telephone number that allows users to receive and dial a call through the internet on any device with an online connection.
Example: If you have a VoIP extension number, then you can make or receive calls with your smartphone, laptop, or any communication device with access to the internet.

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