What Is the PBX Telephone System?

PBX stands for private branch exchange. A PBX telephone system connects telephone lines to each other within an office setting. The types of lines connected by a PBX system include telephones, fax machines and modems.

  1. History

    • Originally called private automatic branch exchange (PABX) in the 1960s, the system allowed employees of a company to call each other using an internal phone system. Over time, PBX systems had difficulty catching on due to difficult interfaces and costly implementation. In the 1990s, PBX manufacturers expanded PBX systems by adding extra ports and integrating them with computer technology.

    Types

    • Private automatic branch exchange, or PABX, switches calls between internal lines and can route calls automatically using relays based on the dialed number. Electronics private automatic branch exchange, or EPABX, extends a PABX system by using electronic signal switching instead of relays. Packet network exchange, or PNX, combines PBX technology with VoIP functionality.

    Benefits

    • Since a PBX system connects lines to each other internally, a business can save a lot of money; it does not have to pay for external phone lines for each phone. PBX handsets assign a unique extension to each set, so calls coming from outside the network can still route to any user on the PBX system.

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