What is a PBX Phone System

Traditionally, PBX (private branch exchange) phone systems are used by businesses where more than one line is needed. The system includes a range of phone lines, which can be as simple as a two line system to as complicated as a large scale private branch. This system is not merely a number of extensions, it usually provides many advanced features relating how calls are handled

Business phone systems are often divided into three broad categories:

  • Key systems – originally, this type was distinguished from a PBX system because a station user was allowed to see the calls directly and direct callers manually to the correct destination.
  • Private Branch Exchange systems – works much like the telephones we are used to seeing. You dial a number and are connected directly to that line.
  • Hybrid system – as the lines between key systems and PBX systems became blurry, a new hybrid system developed. The modern key system is now able to support ISDN, SIP, analog handsets (as well as its own proprietary handsets – which are usually digital) plus a slew of other features traditionally found only on larger PBX systems.

Confusing and complicated. But, to truly appreciate the hosted PBX phone system, you have to understand what it’s all about.

What is a Hosted PBX System?

A hosted PBX system provides customers with PBX technology and functionality as a service. This service is brought to the customer over the PSTN (Public Switched Telephone Network) or over the internet. Hosted PBX systems are typically provided by the telephone company and using their equipment which is located at the telephone company exchange. This means customers are not required to buy or install complicated PBX equipment and the telephone company is able (in some case) to use the same re-directing equipment to supply services to multiple PBX customers at the same time.

PBX services delivered over the internet are much cheaper than the traditional method, which is still used by many companies today. This, however, is changing as more companies begin to realize the advantages of using internet hosted PBX.

The functionality of PBX has improved greatly, as well. Updates and new features available today put the new hosted PBX systems leagues ahead of anything that was available before.

In addition to everything the old system offered, the new hosted PBX now includes:

  • One number that can represent the entire company, no matter where different branches are located. A company may even choose not to have a physical location at all. Workers can be connected from their own homes, using their own personal phones, but receive the same features as any PBX user.
  • Employee access to the company network with a variety of telecommunications systems, such as ISDN, POTS, cell phones, or VoIP. With this system one extension can ring in multiple locations, either sequentially or concurrently.
  • Easily integrated with custom toll plans.
  • Companies don’t need to manage or pay for expensive equipment.
  • Scalability, so that when new employes are hired, the company doesn’t have to upgrade to a larger system, or downgrade when the work-force is reduced.

These are just a few highlights. For all of the benefits and advantages of a PBX phone system, visit www.virtualpbxphonesystems.com.