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What is a PBX Phone System?

what is a pbx phone system

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Looking for an upgrade for your business phone system? One that reduces calling costs but enables better and reliable connection? A private branch exchange or PBX system works alongside your current telephone network. However, it has the potential to give you access to high-quality voice and video communication. In this post, we explain what a PBX phone system is and how it can benefit your business.

Private Branch Exchange (PBX): What is it?

A private branch exchange is a telephony solution that enables communication between users of a private network. A PBX system works with your business’ telephone network and handles forwarding and routing features for calls. Companies use private branch exchange systems to reduce monthly phone bills as it operates internally and uses fewer phone lines.

Most PBX providers will offer you communication features along with the system. These features include voicemail, cloud IVR, custom messages, call transfer, and extensions.

Before these systems worked only through plain old telephone service lines. However, now, you can connect your PBX with VoIP technology. Voice over IP technology uses the internet instead of analog phone lines to make and answer calls. Both of these systems together will give you the ability to use SIP trunking as a feature that offers voice and video calling at inexpensive rates.

Setting up a private branch exchange system, however, needs expertise. To install PBX for your office, you will need specific hardware, physical space, and an IT team for maintenance. Costs for these can increase quickly. Thankfully, cloud PBX functions as a cost-effective solution.

4 Reasons for Businesses to Use a PBX System

So, why should your business consider getting a private branch exchange phone system? There are many benefits to using a PBX system, which include:

  1. Running a call center: PBX systems can hold inbound and outbound calls in a queue and transfer them to the right department when the time comes.
  2. Connecting multiple locations: a PBX system can route users to employees, agents, or departments in another office location, enabling team collaboration.
  3. Transferring calls through extensions: calls can be transferred quickly and with ease, without the worry of calls being dropped.
  4. Custom call management: Handle and route calls according to your needs and desires by setting rules within the system.

With advancements in telecommunications, there are a few different private branch exchange systems to choose from. The most common are hosted/cloud and on-premise/IP PBX. Let’s delve into these types first.

On-Premise Private Branch Exchange System

An IP or on-premise PBX system refers to a system that is installed within the office, is IP-ready, and is handled and maintained by you. If you want a system that you can control and manage and you have the budget for it, then an on-premise system may be your solution.

You can set up your PBX to work with VoIP technology, otherwise known as IP PBX. This enables users to make and receive business calls through the internet instead of analog lines. With IP PBX, you can rely on high-quality calls and use features such as call forwarding, queuing, transfer, etc.

Cloud PBX

A hosted or cloud PBX system works similarly to an on-premise system, except that it is operated by your provider. Therefore, you do not need to worry about installation and maintenance costs or even hiring an IT team to manage the system. In fact, you simply sign up for the service, complete the minor set-up, and start using it.

With hosted private branch exchange, calls made are routed to the provider and then the destination. Cloud PBX systems are VoIP-based systems that help you take advantage of cloud communication features such as call forwarding, recording, IVR systems, and more. Furthermore, they eliminate maintenance costs as the provider is responsible for maintenance.

On-Premise vs Cloud PBX

On-Premise Cloud
Customizable Customizable
May use VoIP tech Uses VoIP tech; Needs a broadband connection
Low monthly costs; High upfront costs Low monthly costs; No upfront costs
Limited calling features Variety of calling features
Physical space required; closet or room No physical space required
Costly maintenance No maintenance costs
Limited scalability On-demand scalability
Can handle SIP trunking for high-definition voice and video calling Can handle SIP trunking for high-definition voice and video calling

Get a PBX System for Your Business

Here at United World Telecom, we can help get you set up with a private branch exchange system that makes call management simple and efficient. You can sign up on our website or speak with our experts to learn more! Call us at 1 (877) 898 8646 to see how we can assist your specific business.