What is a PBX Phone System?

PBX stands for Private Branch Exchange, which is a private telephone network used within a company. Users of the PBX phone system share a number of outside lines for making external phone calls.

PBX Phone System

A PBX connects the internal telephones within a business and also connects them to the public switched telephone network (PSTN), VoIP Providers and SIP Trunks.

One of the latest tendencies in PBX phone system development is the VoIP PBX, also known as IP PBX, which uses the Internet Protocol to transmit calls.

Nowadays, there are four different PBX phone system options:

  • PBX
  • Hosted/Virtual PBX
  • IP PBX
  • Hosted/Virtual IP PBX

IP PBX is a software-based PBX phone system solution which helps accomplish certain tasks and delivers services that can be difficult and costly to implement when using a traditional proprietary PABX.

3CX Phone System for Windows is a good example of an IP PBX phone system.