A hosted phone system, also known as a cloud-based or VoIP (Voice over Internet Protocol) phone system, is a communication solution where the phone infrastructure and services are hosted and managed by a third-party provider over the internet. Instead of relying on traditional on-premises hardware and telephone lines, a hosted phone system uses the internet to transmit voice calls. This setup offers flexibility, scalability, and cost-effectiveness, allowing businesses to easily add or remove lines, access advanced features like call forwarding and voicemail-to-email, and reduce maintenance costs. Overall, hosted phone systems provide a modern, efficient, and reliable communication solution for organizations of all sizes.