Define PBX
A private branch exchange (PBX) is a telephone network that serves a particular business or office. All telephones within the enterprise are wired to the PBX.
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Purpose
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Companies use PBX systems mainly for convenience. Employees need to dial only three or four digits to call someone within the company.
Outside Calls
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People using a PBX can call a telephone line outside the system by dialing the assigned outside access code -- usually the number nine -- before the telephone number.
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Manufacturers
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Avaya's Definity series and Northern Telecom's Meridian series are two of the most common PBX systems. Siemens, NEC and Mitel also make PBX systems.
Private vs. Public
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PBX, which serves a particular organization, is different from telephone systems that a common carrier or telephone company operates for either several businesses or for the general public.
Significance
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Without a PBX, businesses would have to install a telephone line for each employee. Thus, PBX is a cost-effective telephone system for such organizations.
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