A telephony system and method having a switch for analog voice and data signals that is connected to a first network, and a router for routing Internet Protocol packets that is connected to a second network using Internet Protocol addressing. The telephony system and method also includes a telephony gateway that is connected to both the switch and the router for converting analog voice signals into Internet Protocol packets and for converting Internet Protocol packets into analog voice signals, the telephony gateway being connected, and a remote access server that is connected to both the switch and the router for converting analog data signals into Internet Protocol packets and for converting Internet Protocol packets into analog data signals. The switch may have a switch matrix capable of being connected to the Public Switched Telephone Network, a line rack with a plurality of line cards connected to the switch matrix, and a trunk rack with a plurality of trunk cards connected to the switch matrix. The switch matrix may also be connected to the telephony gateway and the remote access server.