Abstract: An Improved Local Switching System provides a full set of business telephone functions for at least two main switch telephone lines and a number of local stations. A Master Switching Unit (MSU) serves outgoing, incoming and local call requests and maintains stable talking connections. A call router (ACR) monitors one of the main switch lines for incoming calls, refers call requests to the MSU, accepts responsibility for transferring MSU stable talking connections to the call router; and handles outgoing calls when the MSU is not available to serve-an call origination request. A transfer switch, under control of the call router, transfers the main switch lines between the MSU and the call router.