A telephone unit having a plurality of lines which connect to a PBX and having a microprocessor which transmits and receives data over a digital line between telephone units associated in a group such that a direct forwarding feature is controlled by the microprocessor altering the ring arrangement among the telephones in the group. The telephone unit also has a speakerphone which is controlled by the microprocessor. Each telephone unit has means for monitoring the status of the lines associated with it and providing data to the microprocessor as to line status.