What is a PBX in VoIP?

What is a PBX in VoIP?

A PBX, or private branch exchange, is a type of business phone system. It connects all office desk phones on the same network. It enables your business to make internal calls for free as well as transfer calls freely. With PBX, a company can have more phones than phone lines.

Is PBX better than VoIP?

Both PBX and VoIP have their advantages and disadvantages. PBX is reliable, secure, and offers high call quality, but both the initial setup and maintaining the system is costly. VoIP meanwhile, is very flexible and scalable, plus the cost of maintaining the structure is much lower than with traditional lines.


An IP PBX is a private branch exchange (telephone switching system within an enterprise) that switches calls between VoIP (voice over Internet Protocol or IP) users on local lines while allowing all users to share a certain number of external phone lines.

Is PBX and VoIP same?

Basically, a PBX is an on premise phone system which is not connected to a data network. VoIP (Voice over Internet Protocol) is another form of phone system technology. VoIP means the voice is converted to data, packetized, and transferred over data network.

Are PBX systems still used?

Since most PBX systems in current use still have some life left in them, end users are keeping them as the “backbone” and supplementing them with the IP-based solutions. This could also be perceived as the intermediary step between operating off of a PBX system and moving into a full-blown IP solution.

Is PBX still relevant?

Essentially, PBX is a legacy term used to describe a business-grade phone system designed to share lines and route calls. Nowadays we use terms like IP, VoIP, or hosted to describe exactly the same thing, so the PBX tag is no longer needed.

How much does a PBX cost?

The price of a PBX phone system is largely determined by the size of the company. In most cases, budget about $800 to $1,000 per employee. That includes the base system, the actual phones, additional features, wiring and installation, and any training and support your company needs.

How does a PBX work?

PBX systems operate by using either VoIP (Voice Over Internet Protocol) or via analog or digital phone lines. With a PBX phone system, the physical phone line coming into your business can be split into multiple lines, allowing you to support more telephones. Better yet, calls between users are free.

How much does a PBX system cost?

A traditional PBX system would cost you about $48,000. Approximate total savings across two years: $31,600.

How do PBX phones work?

How do you set up a PBX?

How to Install a PBX Phone System

  1. Plug the telephone cord into your PBX console in an input that says, “Telephone Line.”
  2. Connect the other end into a wall jack.
  3. Insert the PBX plug into the console.
  4. Pick up the receiver to place a call.
  5. Wait for the system to ring and light up, which means you have an incoming call.
  • August 18, 2022