The PBX

A Customer Center entry from June 12, 2007
by Spencer D. Chin - TMCnet Web Editor

A PBX, otherwise known as Private Branch Exchange, is a private telephone network that allows a number of attached telephones to make external calls by sharing outside lines.

A PBX is significantly less expensive than connecting an external phone line to every line in the organization. Placing a call within a PBX system is considered easier as an extension of just 3 to 5 digits is needed to place the call.

While organizations initially switched to PBX systems to save on phone chargers, PBX systems have broadened their appeal over the years. Today’s PBX systems are more flexible, less expensive, and easier to manage than before.

A PBX system can incorporate features such as digital receptionist, music on hold, time-based behavior, voicemail, analog phone support, VoIP phone support, message waiting indicator, one-touch voicemail retrieval, interactive voice response menus, call transfer, and other features.

PBX systems have evolved in recent years to hosted systems, where the PBX is located at and managed by the telephone service provider, and features and calls are delivered through the Internet. These PBX systems do not require customers to buy and maintain CPUs, cards for switching, logic, and control, and other related hardware. All the customer has to do is sign up for the service.

Modern PBX systems have also embraced Voice over Internet Protocol, or VoIP, in hosted PBX arrangements. The ability to route voice calls over the Internet is bringing down the cost of implementing PBX for many businesses—including small and home-based businesses.

In addition, the rise of hosted, or virtual PBX systems has extended the functionality of fixed-line PBX systems to mobile devices such as cellular handsets, smartphones, and PDA phones. Thus, remote and traveling users can avail themselves to the advantages of PBX outside the main office.

-----
Spencer Chin is a contributing editor for TMCnet. To see more of his articles, please visit his columnist page.

— June 12, 2007