What Is the Meaning of PBX?

A PBX (Private Branch Exchange) is a telephone switch used to place phone calls within an organization. A PBX allows an organization to lease a small number of lines and share them across the company, rather than leasing each phone line individually.

  1. How Does a PBX Work?

    • All phone lines within an organization are wired to the PBX. When someone needs to place a call, they pickup the receiver and dial an access number, often the number 9. The PBX then connects that particular phone to an outside line, and the user is able to dial the telephone number. A PBX can also connect devices such as fax machines and modems.

    History

    • The term PBX originally applied to the operators who manually received and connected calls at the phone company. As technology progressed, the terms Private Automated Branch Exchange (PABX) and Private Manual Branch Exchange (PMBX) were used to differentiate between them. As the manual operators were phased out, the term PBX became widely adopted.

    Types

    • There are several types of PBX systems available including traditional PBX, hosted/virtual PBX, Internet Protocol (IP) PBX and hosted/virtual IP PBX.

    Differences Between PBX Systems

    • Traditional PBX systems use the public switched telephone network (PSTN) to connect and place telephone calls. An IP PBX system using the data network to connect and place telephone calls (referred to as Voice over IP). Regardless of the type of PBX, it can be installed and managed on site at an organization, or it can be hosted and managed by a third party service provider.

    PBX and Mobile Devices

    • As mobile devices have risen in popularity, many organizations have begun using mobile PBX systems. These systems allow direct extension dialing from cell phones, smart phones and PDAs through the devices' Internet connections.

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