What is a PBX phone system?

PBX stands for Private Branch Exchange System, which is a private telephone network used within a company or organization. The users of the PBX phone system can communicate internally (within their company) and externally (with the outside world), using different communication channels like Voice over IP, ISDN or analog. A PBX or PABX also allows you to have more phones than physical phone lines (PTSN) and allows free calls between users. Additionally, it provides features like transfer calls, voicemail, call recording, interactive voice menus (IVRs) and call queues.

Traditional PBXs would have their own proprietary phones, such that there would be no way to re-use these phones with a different system. This means that we either have system-lock-in (we are bound to the same system because changing system means also changing phones, which makes it prohibitively expensive to break away) or vendor-lock-in (we are bound to the same vendor because the phones are only usable with systems from the same vendor, sometimes only within a particular range of systems).

Time and technology, however, have changed the consumer telephony landscape, with the flag-bearer being the Open-Standards-based IP PBX. The point of the “IP” in this new era is that the phone calls are delivered using the Internet Protocol as the underlying transport technology.

PBX phone systems are available as hosted or virtual solutions and as on-premise solutions to be run on your own hardware.

How does a PBX System works Diagram

With a traditional PBX, you are typically constrained to a certain maximum number of outside telephone lines (trunks) and to a certain maximum number of internal telephone devices or extensions. Users of the PBX phone system (phones or extensions) share the outside lines for making external phone calls.

Switching to an IP PBX brings with it many benefits and opens up possibilities, allowing for almost unlimited growth in terms of extensions and trunks, and introducing more complex functions that are more costly and difficult to implement with a traditional PBX, such as:

  • Ring Groups
  • Queues
  • Digital Receptionists
  • Voicemail
  • Reporting
  • Intercom / Paging

What is a business phone system?

A business telephone system is a multi-line phone system used in a professional environment. For enterprises and small businesses alike, this has grown to include more advanced features for managing phone calls and modern communications solutions. More specifically, IP (internet protocol) technology has expanded the possibilities of phone systems. This includes integration with other business software.

In its early forms, business telephone systems used technology such as the key telephone system (KTS). More recently, this has evolved to cloud-based private branch exchanges (PBX).

However, business telephone systems have evolved. One of the first advances allowed users to connect to other desk phones without depending on an operator or switchboard. PBX systems now connect modern SIP (session initiation protocol) and IP phones. These are also known as VoIP systems. Users can also access their office phone extension over the internet or via a mobile app.

Additional features have also brought modern communications beyond a simple phone system or even a traditional private branch exchange. Unified communications now offer the latest technology for collaboration, customer service and remote work. Some of the advanced features include video conferencing, instant messaging and virtual receptionists. Users can set up auto attendants and custom greetings or access a visual voicemail menu from an online interface.

What is office phone system technology?

Most modern office phone systems rely on IP (internet protocol) communication, using a local area network or a high-speed internet connection instead. This means enterprises and small businesses alike can use their existing phone or network wiring.

A modern office phone system connects SIP / VoIP phones to a PBX server via the internet. This can also be referred to as an office VoIP system. This technology opens the door to a greater variety of phone access:

  • Softphones: These are software based phones run as programs on a computer.
  • Web phones: Similar to softphones, but are available via a web browser using secure credentials.
  • Mobile Apps: Apps on a personal mobile phone can provide access to the business phone number. They also allow users to access many of the features of their office phone extension.

What are the benefits of a modern business telephone system?

benefits of a modern business telelphone system

A simple set of office extensions may cover the basic needs of a small business. Basic features may include voicemail and call transfer. Yet, any sized business will be missing out on the advanced features of a modern communication system. These can enable better customer service and more efficient work.

3CX has established itself as the leading IP-PBX manufacturer, ticking all the checkboxes for any business looking for enterprise-grade features.

  • Cost Savings: While older phone systems have fewer features, they tend to cost more both in maintenance and in monthly phone bills.
  • Easier to Maintain: Dedicated wiring and hardware requires specialized service. Because a modern phone system uses an internet connection, they can use existing LAN infrastructure. System maintenance is mostly over a computer interface. Users can add a second phone line, for example, in minutes.
  • Connect Over the Internet: Besides easier maintenance, using an internet connection means businesses can access their phone system from anywhere. This makes it easier to bridge multiple offices.

  • Mobility and Remote Work: Even if users are not in any office, they can still use a web browser or cell phone to manage their communications. On a web or mobile app, users can call a colleague’s extension, answer incoming calls or call external numbers. They can also see caller ID, transfer calls and set up call forwarding. In addition, some office phone systems integrate video and business texting.
  • Easy Expansion: An IP phone system is also easier to expand. Adding a new extension can be as easy as setting up a user online, then plugging in a phone.
  • Call Center Features: Systems no longer rely on manual switchboards. But online switchboard options, auto attendants, call forwarding rules and advanced queue strategies allow businesses to manage phone calls more efficiently. Modern systems allow supervisors to record calls, listen in to calls or take over for training and better customer service.
  • Modern Business Communications: Simple phone calls are still common. But many professionals and customers now prefer alternatives. These include video calls, web conferencing, instant messaging and social media. Business telephone systems have expanded to include tools for all channels.
  • Integration with Other Software: Business software is moving towards cloud computing. An IP PBX can integrate with CRMs, for example. This would allow businesses to sync contacts and manage information in a single location.

Why choose 3CX as your business phone system?

  • Low Pricing: 3CX offers flat rate annual pricing. When compared to monthly plans that charge per user, this can save businesses up to 80% on monthly phone costs.
  • Flexible Licensing: Pricing is also based on simultaneous calls. If a business has 50 users, most phone system providers charge for all 50 lines. Even if they use only 10 lines at a time.
  • Complete communication system: 3CX offers video conferencing and live chat included in the cost. It also integrates with the most common CRMs, WhatsApp and instant messaging.

  • Flexibility: With 3CX, businesses choose their own SIP trunk and VoIP phones. Since 3CX is an open platform, it integrates with most common service providers and hardware. This means savings on hardware, toll-free numbers, long-distance calling and more.
  • Mobility: 3CX offers full-featured apps for web browsers as well as iOS and Android devices.

  • Easy Scalability: As a business grows, 3CX’s software scales easily. Flexible licensing likewise makes it easy to increase, or reduce, phone service.

3CX has established itself as the leading IP-PBX manufacturer, ticking all the checkboxes for any business looking for enterprise-grade features.

Further reading