WHAT IS PBX: Clarification, Types and Price

What Is Pbx

The Private Branch Exchange System, or PBX, is a private telephone network that is only utilized inside of a business or organization. Users of PBX phone systems can connect internally (inside their organization) and externally via a variety of communication channels, including Voice over IP, ISDN, or analog (with the outside world). Accessible user-to-user communication is also made possible via a PBX or PABX, and you can have more phones than actual phone lines (PTSN). Voicemail, call recording, call queuing, and interactive voice response (IVR) menus are further functions. The PBX phone system was formerly all about a business communication call line within the company, but thanks to technology, it’s much better. Today, PBX is more of a VOIP and UCaaS platform that allows you to make phone calls over the internet.


Many businesses use software today for their communications. But a few decades ago, almost all of these businesses relied on traditional private branch networks, which were essentially made up of tiny phone exchanges situated in offices. You could make and receive calls over the company’s internal telephone network because each employee in the workplace would be physically connected to the network by a handset. quite analog.

The PBX sector has recently experienced a mini-revolution of its own. You could come across “virtual PBX” or “cloud PBX” systems, which are essentially PBX systems with the ability to place calls online tacked on. The name of this technology is VoIP (Voice over Internet Protocol). Hardware is still commonly used by basic VoIP PBX systems, but it is often owned and maintained off-site (this is also referred to as “hosted PBX”).

The primary difference between VoIP phone systems and traditional PBXs is that VoIP does not require physical equipment. Aside from this, it’s also often far less expensive, and is more adaptable. Later, we’ll be more specific.

What Is PBX?

A private branch exchange is a phone system inside a business that lets users( these are the business workforce)  share a certain number of external phone lines and switch calls between users on local lines. A PBX’s main goal is to save money by not requiring each user to have a line to the central office of the phone company.

A company’s internal phone network is run by a PBX. The system handles how calls come in and go out, as well as more advanced calling features. While this may sound simple, it’s not easy to set up a PBX. A company hires one or more systems administrators who have worked in telecom for a long time. You would also need a place in the office, like a closet or server room, to put the PBX system.

Advantages of PBX phone system

Consider migrating to a VoIP or UCaaS business communications platform if you currently use a PBX system and experience any of these problems.

#1. It Makes it Possible to Work Remotely on Any Device

With UCaaS services, you may work from almost anywhere as long as you have an Internet connection. No need to provide hardware or infrastructure, or ship out phones. Simply create an account with the UCaaS provider and, if you like, download the app to get started.

#2. You Gain a Deeper Insight Thanks to the Call Analytics and Real-Time Information

For you to provide a pleasant customer experience, having real-time data that reveals how many calls your company is taking and how long consumers are placed on hold can be essential. For businesses that operate call centers or contact centers, this may be very important. With PBX systems, accessing data is frequently challenging, and you frequently have to go through many hoops to request and actually receive that from your supplier.

#3. It Is Compatible With Other Programs You Currently Use

Finding a PBX service provider that integrates with every piece of software your company now uses, such as CRM and ticketing software, could be difficult. UCaaS solutions usually provide sophisticated app markets or integration galleries that show all the other resources they can connect with in order to reduce too much manual data entry required from you.

#4. Scaling and Expansion Are Made Easier

If you have big aspirations for your company to grow, especially internationally, UCaaS provides a considerable edge over PBX phone systems in terms of scalability. You don’t need to ship out new phones or set up new infrastructure around the world because your new hires only need a computer and a phone so they can make calls over the Internet.

What Is Pbx in VoIP

A Voice over Internet Protocol (VoIP) private box exchange (PBX) is a business telephone system that offers services similar to those of a standard PBX, in contrast to the circuit-switched networks used by the traditional Public Switched Telephone Network (PSTN).

VoIP and PBX both have advantages and disadvantages. For instance, PBX offers good call quality, dependability, and security, but the system’s initial setup and continuous maintenance are pricey. Contrarily, VoIP is much more scalable and adaptable, and it also has substantially cheaper maintenance costs than traditional lines. However, VoIP performance is heavily reliant on the strength of the internet connection; as speeds deteriorate, so does call quality.

How Do VoIP and PBX Differ?

Since many people interchangeably use PBX and VoIP, let’s start by defining each of their specific definitions.

#1. PBX (Private Branch Exchange)

  • kind of private business telephone network
  • Internal and external communication among employees of the firm is made possible by this type of network.
  • Users can make and receive calls on PBX networks, but they also have access to a few useful features not available on regular phones, like call transfers and IVR menus.
  • Using a PBX, a company can set up several phones that are all connected to the same network.

#2. Voice-Over-Internet-Protocol (VoIP)

  • uses a completely different approach, with calls being forwarded online.
  • Your voice is converted to data, compressed, and sent to the receiver phone each time you make a call.
  • Businesses opted for the more trustworthy PBX system a few years ago since VoIP calls were of low quality.
  • Voice calls today have the same quality as a typical PBX call.

Although the speed and quality of the networks may be comparable, there are still many differences between them.

PBX vs. VoIP: Important Differences

The following are the difference between PBX and VOIP.

#1. Call Quality

The hardware used by PBX, such as the routers and phone models, is mostly in charge of the call quality. If the system is set up correctly and the phones are high-quality models, the calls will be of excellent quality. However, with VoIP, the issue is a little more complicated because there may be a variety of causes for the calls’ poor sound quality. A slow or unstable internet connection is one of the most common causes.

#2. Monthly Costs

This relies on the configuration of your PBX. You usually need to add up your phone bills, system maintenance, and maintenance-related expenses. Although VoIP is frequently a subscription service, you will also need to pay for a phone license and software. Your monthly cost will vary depending on the calling tool and plan you choose.

#3. Flexibility 

As a result, a new problem emerges, one that is especially obvious in light of the current pandemic. PBX phones can only be utilized inside your office and with the right phone types. Dialing from a distance is not an option as a result.

When it comes to VoIP systems, you have a lot more options:

  • You can use your phones as long as they support VoIP calling.
  • They can also be used anywhere there is a trustworthy internet connection.
  • Your agents can also handle calls straight from a PC app or their mobile phones.

PBX System Price

A PBX system’s cost is influenced by a variety of factors. Installation should be considered first. On-site IP PBX solutions are often more expensive to set up because they require the purchase of hardware and equipment as well as installation. The typical price per employee for an on-site PBX system installation is between $800 and $1000. Businesses that need more than 50 extensions may incur installation charges that easily approach $100,000. 50 users will pay about $1500 each month, which will pay for phone lines, equipment lease payments (if not upfront purchases), exterior upkeep expenses, and more.

Hosted VoIP installation costs frequently comprise just the cost of the number of VoIP phones that a company is ordering. The price per user for a smartphone might be somewhere between $5 and more than $100. The price is affected by a lot of factors, such as the VoIP equipment you use, the plan you choose, and the number of users. Hosted VoIP service prices typically range from $20 to $30 per user per month.

PBX phone systems have several benefits for businesses that greatly improve customer service and agent efficiency. The cost savings alone justify the investment when compared to traditional phone lines. Both IP PBX and hosted PBX are reliable phone systems that continue to meet the needs of the vast majority of small businesses.

Pbx Phone System for Small Business

Modern communication is expanding swiftly, so choosing the finest phone system or unified communications platform for your small business is crucial. Business phone systems have advanced dramatically over the past several years, providing large corporations and small businesses with a variety of features and functionalities to enhance internal and external contacts.

Types of PBX Phone System Options for Any Small Business

The following are some of the various types of PBX phone system notions for businesses;

#1. Traditional Private Branch Network

Before the emergence of digital corporate communications platforms, the bulk of firms relied on actual telephone systems that were stored on-site in equipment rooms or phone closets. These private branch network systems make use of conventional copper phone lines or landlines that enter a business’s building and are connected to a private exchange network box. With the switches in this box, you can send calls to both specific exterior lines and all business phones.

These systems were expensive, and businesses had to spend a lot of money upfront on the hardware and skilled installation. In addition, because this system depends on actual hardware and wiring, extending it would require stopping your business, recruiting specialized personnel, and finding extra space for equipment.

#2. Hosted PBX

Hosted is an IP PBX system that, you guessed it, is hosted off-site by a VoIP provider. Generally, hosted PBXs offer all the same features and services as on-premises VoIP PBXs, but because they are hosted off-site, there is no need to maintain a large hardware system on-site.

Instead, your supplier manages and maintains all of the equipment remotely, which reduces your installation and maintenance costs. Small businesses can often afford the monthly fees for hosted PBX phone solutions.

#3. Virtual PBX

This one tends to blur. Some people may assert that a virtual private branch exchange is essentially a cloud private branch exchange or phone system that supports Internet call making, depending on who you ask.

Others contend that a virtual private branch exchange is not a “full” phone system, but rather only a component of a hosted PBX that solely handles incoming calls. In this post, we’ll refer to it as a software-only private branch exchange phone system that you’ll have to install in your office closet or somewhere else at a third-party supplier’s corporate headquarters.

#4. IP PBX

The IP PBX employs Voice over Internet Protocol (VoIP) telephony to make and receive calls using computer networks instead of the Public Switched Telephone Network (PSTN). Traditional private branch networks have many fewer advanced telephony features than IP PBX phone systems. You’ll have to host this private branch network internally, so that all hard and software costs fall under your company’s purview.

You need to connect your PBX phone system to physical equipment (IP phones, handsets, etc.) and ethernet connections. However, it’s generally more economical than a traditional private branch network system because long-distance phone service rates are typically lower.

What PBX Means?

A private branch exchange is a phone system that allows all users to share a set number of external phone lines while allowing call switching between users on local lines within an organization.

What is a PBX and How Does it Work?

Private branch exchange systems (PBX) use VoIP (Voice Over Internet Protocol) or analog or digital phone lines to communicate. You can divide the physical phone line entering your organization into many lines using a private branch exchange phone system. This will allow you to accommodate more telephones.

How Do You Use a PBX Phone System?

A private branch exchange, also known as a private branch exchange, is a private telephone network used only within a business or organization.

What Is The Difference Between PBX and IP PBX?

The IP private branch exchange (Internet Protocol PBX) is an updated version of the private branch exchange systems that ushered in the twenty-first century.

How Many Types of PBX Are There?

Phone branch exchange systems come in three types: cloud-hosted, digital, and analog.

Why is it called PBX?

Private Branch eXchange, or PBX, is the abbreviation for a business phone system with numerous inbound and outgoing lines, call routing, voicemail, and call management capabilities.

Is IP Office a PBX?

The IP Office system can be set up as an IP telephony server using direct leased lines, high-speed ISDN/PRI dial-up access, SIP trunks, or classic circuit-switched lines as a voice-only PBX.

Is PBX digital or analog?

The majority of businesses now use the internet to send voice and video communications, replacing the analog technology that was once used by PBX phone systems. Today, practically everything is digital.

Is PBX a landline?

Instead of analog landlines, an IP PBX system makes use of digital phone signals. Businesses might gain access to several easier-to-use features by upgrading to an IP phone.

Can I use IP phone without PBX?

Do VoIP Users Need a PBX? To use VoIP effectively, your company does not need to have a PBX system in place. The sole prerequisites for VoIP are a VoIP phone and an internet connection. Most PBX features can also be provided by your VoIP provider without the need for on-site PBX hardware.

Can PBX be hacked?

Hackers attack PBX networks in ways that could have an effect on the business. They may make long-distance calls for free using the PBX, leaving the business to cover the costs. Hackers may take data or merely disable the network. Phreakers are the term for these hackers who specialize in phone system hacking.


When it comes to its usage, it appears simple, but the truth is that setting up a private branch exchange system is not as simple as you may think. However, some administrators make the process easy. Also, the benefits of setting up a private branch exchange system far outweigh the stress of setting it up. So, it’s a good investment.

What is PBX? FAQs

What is the best PBX system?

Among the three types of PBX, digital is the best of them all.

Are PBX systems still used?

Due to the fact that the majority of PBX systems currently in use are still functional, end users are keeping them as the “backbone” and complementing them with IP-based solutions. This could also be seen as the transitional stage between using a PBX system and switching to a full-fledged IP solution.

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