What is PBX?

A PBX (Private Branch Exchange) is a private telephone system used within a company or organisation that switches calls between users on local lines, while allowing all users to share a certain number of external phone lines.

The PBX is owned and operated by the organisation rather than the telephone company. Originally Private Branch Exchanges used analogue technology but today this has been switched to digital technology. This means that digital signals are converted to analogue for outside calls using Plain Old Telephone Service (POTS).


Benefits of PBX

The main benefit of a PBX is to save the cost of requiring a line for each user to the telephone company’s central office.

Users of the PBX can communicate internally within the company as well as externally using communication channels like VOIP, ISDN or analogue. A PBX also allows a company to have more phones that physical phone lines (PTSN) and allows calls between users. It also provides features like transfers, voicemail, call recording, interactive voice menus (IVRs) and call queues.


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