What Is PBX?

PBX stands for Private Branch Exchange, a telecommunication system designed for businesses and organizations.

A PBX manages internal and external communications by creating an internal telephone network. The purpose of a PBX is reduce the number of inbound phone lines; instead, the phone system is designed around the number of calls that will be made at the same time. Then, the PBX has only the number of phone lines necessary to make all those calls

Traditionally, a PBX was a manual phone system, run by switchboard operators. Today, packet switching technology allows the process of connecting phones within a phone system to be automated.

A VoIP PBX is a PBX that uses VoIP to supply phone service.

Circuit-switched networks are still used for PBXs. However, VoIP PBX is much cheaper and more efficient than traditional landline communication. VoIP sends data and voice together over the Internet, using less bandwidth in a connection.

PBX Systems will either be held on-premises of the business or be hosted by a VoIP provider. PBX gives extensions to employees or departments instead of using separate phone lines.


On-premises VoIP PBX is called IP PBX. An IP PBX phone system requires a business to run and maintain its own hardware, which will run a data network with Internet Protocol and also interact with the public switched telephone network.

Alternatively, there is on-premises PBX using software, called digital PBXFeatures and functions are run digitally rather than through switching and network hardware, but the business must still maintain the system.

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