How the PBX phone system revolutionize your business communication


The phone was invented a very long time ago in the 1800s. Back then, it was considered as magic where two people could talk to each other from a distance. It revolutionized the communication system completely. Only a handful of people owned the phone systems but as technology evolved, we have seen a series of innovations till today and still being innovated.

Before we understand the key elements and benefits of the PBX phone system, let’s try to get answers to some of the ground level questions.

What is PBX?

What is PBX?


It is the short term for Private Branch Exchange (PBX). It is a private set of the network which helps the business to manage phone communication both within internal departments and external clients. In recent times, it is also known as Unified Communication (UC) or UC as a service (UCaaS).


Why do we need a PBX phone system?


It is an exchange system that was developed to provide large business organizations to cut down the cost of telecommunication. As the name PBX phone system suggests, it’s a private network that allows businesses to handle their own communication along with the ability to call outside the organization using PSTN (Private Switched Telephone Network).


How does a PBX phone system work?


In most of the cases, PBX phone systems are hosted on-premise with in-house IT infrastructure. However, It is also being hosted on the cloud providing cloud telephony benefits to the users. The PBX phone system has four different types of endpoints namely, analog, digital, VoIP (Voice Over Internet Protocol), SIP (Session Initiation Protocol). The PBX systems on one of these protocols to route the calls via PSTN to connect calls.

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How to set up a PBX phone system?


From the infrastructure point of view, it requires a PBX machine (you can use IP PBX box as well), a telecommunication service provider (TSP), the internet service provider (ISP) from companies such as AT&T, Earthlink, Sprint, etc. In order to connect the calls, you need an identity of the user to connect. That identity is known as a phone number. In this case, a virtual phone number.


When to implement a PBX phone system?


It is majorly observed that businesses start using IP PBX phone systems when they make a huge volume of calls (for example- 1000 calls a day) that leads to an increase on their phone bills. Secondly, if the organization has multi-locations and hundreds and thousands of employees.


What is IP PBX?


In simple words, PBX is used to route calls internally among users and departments. However, if you want to transfer the call using internet service within the premise on IP phones or outside the organization, you will need an IP PBX phone system. In other words, PBX is a dedicated private network to communicate internally whereas, IP PBX is VoIP but instead of using multiple trunk lines uses only one line directly from VoIP provider.

After understanding the basics of PBX, let’s understand how the PBX phone system revolutionized the telecommunication industry. This technology has changed the way corporate communication channels worked and provided a futuristic perspective to telecommunications in one of the most economical way possible.


Cost reduction- This is the main advantage of using a PBX phone system. It has helped organizations to reduce communication costs drastically. Setting up a PBX phone system is a one-time investment and task. However, it helps in the long run. Especially when the call volumes are high and business is expanding.


Reduced downtime- It is easy to manage when you have the controls of the infrastructure. Though it requires dedicated staff, however, it helps to keep the functional by continuous monitoring. The faults and issues can be fixed instantly by the staff and internal support requests can be handled quickly.


Faster connectivity- The system is hosted on-site so it speeds up the call routing process and connects the parties quickly in comparison to other phone call methods. This tremendously helps in boosting the productivity of the employees.


Multiple extensions and phone numbers- You can set up unlimited extensions based on hardware and provider capacity. The best part is that you can do this by yourself without having to worry about contacting any third party for the job. You can set up your dedicated US virtual number to make and receive phone calls.

The bottom line is that by using the PBX telecommunication system you can set up local phone numbers in your organization to interact with your colleagues and customers in the best, fastest and most cost-effective way. Talkroute is one of the top choices when it comes to VoIP and setting up hosted VoIP solutions for organizations to run their phone systems. To wind up this article, it is advised to have a better VoIP provider for small businesses and IP PBX systems for large organizations.



Stephanie is the Marketing Director at Talkroute and has been featured in Forbes, Inc, and Entrepreneur as a leading authority on business and telecommunications.

Stephanie is also the chief editor and contributing author for the Talkroute blog helping more than 100k entrepreneurs to start, run, and grow their businesses.

StephanieHow the PBX phone system revolutionize your business communication