I understand that an existing home 'phone network may be connected to SH2? If so, can digital 'phones such as the BT Essential be plugged into the sockets, or just my old BT Decor handsets?
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You can connect either phone to the socket on back of SH2 without a problem
Whatever works in your current phone socket will work in the green socket at the rear of the hub.
Digital Voice handsets don't plug in anywhere, they are cordless handsets that connect directly to the DECT base station built into the hub.