What is a PBX Phone System and how does it work?

pbx phone system

You might be asking, what exactly is a PBX Phone System and how does it work?

PBX phone systems are otherwise called private branch exchanges. It is a private telephone system that is used within an organization. Users can communicate internally and also worldwide using a range of communication channels including voice-over IP, ISDN, and analog. It connects with internal telephone systems to make internal business calls and it also connects with the public switched telephone network or PSTN, VoIP, and SIP trunks.

During the 20th century, PBX was run on analog technology but they are digital now. The PBX system includes several phone systems that connect outside the building. It also has many internal lines that help in making internal business calls.

The computer will manage to make calls by switching from one line to another according to the numbers they dial. It does not require a human operator but organizations still maintain a telephone operator.


Working of VoIP PBX Phone Systems

Some PBX systems rely on Voice Over Internet Protocol (a.k.a VOIP) technology. It converts every phone call into a data packet and sends them over the computer network. The company ROI of using VoIP PBX systems is based on the telephone network they use. When compared to a regular PBX system, VoIP saves cost as it uses a single network for both data and phone calls instead of two. It uses a central server instead of a central switching board. These phones require the hardware and software to connect to the server.


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Working of Virtual PBX Phone Systems

Virtual PBX hands over the exchange set up to other companies instead of handling by itself. It works the same as the VoIP but without the technical set up in the workplace. The other company providing virtual PBX has its own benefits such as there are no physical limitations for the number of lines and you can easily add more when needed. Virtual PBX is otherwise called as hosted PBX.


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Features of a PBX phone system


  • The PBX phone system in an organization shares a single telephone number with unique extension numbers for each employee. This helps to reach the targeted person with a simplified calling experience.
  • PBX systems can route the calls to different phone numbers using pre-set codes. This helps a multi-branch company to route off-hours incoming calls to branches that are open or to 24/7 customer care.
  • PBX systems allow the callers to know how long they should wait until the operator gets on the line. This helps to enhance customer experience and also reach the recipient at the right time.
  • Conferences are made centralized with PBX systems for any organization. It allows them to arrange conference calls, organize meetings, and enhance the company’s productivity.
  • The internet-enabled PBX systems can divert voicemails to customer’s email by ensuring that important messages reach the recipient on time even when the person is not available in the workplace.
  • PBX systems ease the work of administrators by allowing them to track, record, and analyze the phone calls. This helps them to gather materials to train new customer care employees.
  • You can also read here for more PABX Telephone System features

Here is your Guide to a PABX System