Yes.  
Dialing 7 digit local is supported as long as the number dialed has the same area code as the calling number.

Note:  all Cloud PBX devices expect a minimum of 10 digits to be dialed before the call is launched to the Cloud PBX servers.  As a result, there may be a 3 second delay between the time the last digit of a 7 digit number was dialed and the time the call is launched.  There are two ways to avoid this delay:

 dialing a # after the 7 digit number 

 offhook the phone after the number is dialed (if applicable)