PBX System: Is Your Current Phone System VoIP Friendly?

Are you looking for phone solutions for your business and have come across PBX? Are you wondering what PBX means? Then we are here to help you.

What does PBX stand for?

PBX is an acronym for ‘’ Private Exchange Branch’’ that is simply a term meaning business – grade phone systems. It is a business-oriented telephone network made of hardware and software components used within an enterprise for efficient voice communications between users of an organization and allows to manage incoming and outgoing calls in an organization as it links a variety of telephone system branches, allowing connections to be made in between them.

What are PBXs used for?

PBX acts as the phone company’s central office in a company and works as an exchange point and point for routing calls. An organization will generally have a large number of phones and workers to manage calls which could be troublesome as well as uneconomic. Rather than dealing with multiple phone lines, PBX can be utilized to link the internal phones together to be used to link to the external world while having one phone number to connect.

A PBX vs a Phone

A PBX is not the same as a traditional phone. This technology offers key voice features required by companies such as extension dialing, music on hold, customer waiting for queues and call conferencing, etc. This connects people at work which is not possible with a traditional phone. Residential telephone lines and cell phone services do not offer these features. Usage of multiple phone lines and reliance on copper wiring to reach out customers is no more now, instead, we can set up a unique phone number for businesses and use them for brand recognition. Thus, it has redesigned the way businesses handle calls and has helped to overcome physical limitations.

Perks of using PBX:

Here is what PBX can do for your business:

  • Allows the company to have a single unique phone number that people can use to contact.
  • Saves organization to pay for several phone lines.
  • Establishes phone communications internally within an organization.
  • Allows for automated greetings, customized per extension.
  • Can be used to record separate voice messages for each extension.
  • Allows conferencing multiple incoming calls with employee extensions.
  • Provides music for customers on hold while waiting for an employee of the company to answer.
  • Automatic call distribution (ACD) is one of its features which distribute calls automatically and evenly amongst company’s employees to deal with customers thus maintaining connections without losing calls.
  • Allows call management via call blocking, call forwarding, call logging, call transfer, and call waiting.
  • Provides automated call answers, manage and divert calls according to a specific and pre-programmed schedule.
  • Provides detailed records of incoming and outgoing calls.
  • Cost savings is a prominent feature.


PBXs have been around for a long time but with the advent of IP telephony or VoIP, Internet Protocol (IP) PBXs are the most common systems used in enterprises. Before the internet, all phone calls went through the phone company’s network, which required analog phones on each end. Although analog systems are still available, they are no longer desirable as they have their limitations of not being upgradable and expandable. They also require adapters in order to work with VoIP and other digital hardware. Before this time, only large companies used PBXs but with the gradual replacement of copper wires with the internet, small businesses can now get their benefits at a fraction of the cost. Most, though not all, PBX systems today are IP-PBX.

IP PBXs use the internet, known as VoIP, to channel calls while acting as a central switching system for phone calls within a business. It is a software-based solution. This means it is much easier to install and configure. There are better management, scalability and enhanced features. You can now make and receive calls anywhere with the elimination of phone wiring. Compliance with SIP standards eliminates vendor lock-in. It is much easier to move and upgrade as compared to earlier PBX systems. These are all benefits with significant cost savings and better customer service and productivity make it a deal to look for.

You know your business best: Let it flourish!

No one knows your business better than you. If flexibility, mobility, convenience and cost reduction is your priority, if you want to exercise more control and stay local then PBX is the solution to plan and think about. An IP PBX delivers significant savings in management, maintenance, and call charges. Upgrading to an IP PBX should be the obvious choice for any company. No matter what side of the fence you’re on, our experts here at Transparent VoIP are standing by to help you craft the best business phone system for your company. Unlock your savings and see why our transparent plan is the one and only plan your business will ever need, no matter your business size.