Why Implement a Closed User Group (CUG)?

Unless a business falls under the category of a sole trader operation, chances are internal communication is a staple in its daily operations. Depending on the nature of the business and/or the size of the premises, much of this communication takes place over the phone. Obviously, it is both unfair and impractical for companies to expect employees to use their own cell phones and bear the charges. Therefore, many firms choose to provide company phones to staff members to make work related communication possible. Of course, the firm usually bears any associated costs with these devices.


While the CUG system is being used in many businesses and in many countries around the world, some companies are not using such a system for the phones they provide to their staff members. Just in case your company falls in the latter category and you are wondering what the benefits of getting a CUG set up for your staff, you may review the information below.


One thing almost every business has in common is the fact that they enjoy being able to save on costs in everything they do. You may see the CUG system as a huge expense that has to be covered at regular intervals. The only reason you have such a view is that you are not familiar with how the system works.

CUG phones can be ordered either prepaid or postpaid. In fact, you do have the option of having a hybrid of both in the group. The postpaid option is the recommended one here as you can easily manage and to some extent predict the bill total for each month.

This is because you can have the phone service provider impose restrictions on both the voice and data aspects of the phone in the form of credit. As the users of the devices cannot go over the set limits, your accounting department can ascertain the maximum possible amount for the bill each month.

On another note, a flat charge is usually paid for calls from one CUG to another. The result of this is that people within the CUG can call each other without using any of the credit allocated to them. This is another way in which cost is managed.

PBX Integration

PBX systems are so much more sophisticated today than they were even five years ago. Though CUG phones are technically external entities to the PBX, they can easily be integrated into the desk phone system in various ways.

For example, if you have a desk phone system that requires authentication for external calling but none for extension to extension dialing, you may not assign a password to staff members that you do not want to have the ability to dial out. If you need the person to be able to call CUG numbers, the PBX can be modified so it treats CUG phones like it does extensions which means no password is necessary to dial them.

Also, CUG phones are best for using the “follow me” feature of a PBX that allows a call to forwarded from a user’s desk phone to his/her CUG after a set number of rings. This allows users to get their calls even when they are not present at their desk phones.

Economies of Scale

As the group dialing rate is fixed for certain quantity ranges of phones, adding new phones to the CUG just requires a budget allocation for the credit limit of the additional devices. The flat rate paid for internal dialing capabilities covers various numerical ranges of phones and so you can add a certain number of phones before that flat rate ever increases.

In fact, some phone providers provide the handset for free if you are using a postpaid plan.


Why Implement a Closed User Group (CUG)?

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