Everything to Know About PBX Telephony for Business

Everything to Know About PBX Telephony for Business

Everything to Know About PBX Telephony for Business

PBX telephony is a traditional type of phone system that allows multiple people to make phone calls simultaneously without going through a switchboard operator. They are generally used by medium to large businesses for communication. They can establish a PBX telephony connection, maintain the call for as long as needed, disconnect the connection when finished, and provide basic information such as the length of the phone call. 

The History of PBX Telephony 

PBX telephony systems were introduced in the early 1900s and referred to as a privately owned and operated PBX telephony network of extensions for making and receiving calls. In simple terms, PBX telephony was an in-house communication system for businesses and was manually operated by phone operators. 

Eventually, with the introduction of automated switches, Private Automated Branch Exchange Systems (PABX) convinced businesses to switch their communication to PBX telephony. 

PBX telephony systems have evolved to become more reliable and richer in features and benefits. Today, they are an essential part of many businesses' communication infrastructure.

What is a PBX Telephony System? 

A PBX phone system is a multi-line telephone system typically used by large businesses. A PBX allows multiple people to make and receive calls at the same time without having to go through a switchboard operator. 

PBX telephony systems are hardware and software that work together to route calls. The hardware includes the telephone exchange, a physical device that connects phone lines and routes rings, and strings telephone sets, which are the actual phones people use to make and receive calls. The software typically includes a control panel that allows users to manage their phone calls and features such as voicemail and call forwarding.

The most critical component of PBX telephony is the logic processor, which handles all of the call routings for the system. They also require outside telco trunks to send and receive the audio signals and a microcomputer to perform data processing. In addition, most PBX telephony systems have a protected power supply to stay operational in the event of a blackout or sudden power surge.

What types of PBX telephony are used in companies today?

PBX telephony initially required particular phones to function, but they are now compatible with almost every type of phone on the market. Most systems also have between two to eight standard phone lines and another four to eight extensions for analog or IP phones. This capacity can typically be extended for an additional cost. 

The standard interface for the system tends to be either a two-wire interface, a proprietary protocol, or a DECT for cordless phones.

PBX telephony systems are available in on-premise and hybrid VoIP models to suit the needs of any business. PBX telephony has now evolved to be capable of being deployed in multiple ways such as on-premises, in the cloud, or as a hybrid PBX telephony solution.

  • On-premises PBX telephony systems are physically installed at your place of business. The PBX Telephony system will be maintained by experienced PBX technicians and connected via Public Switched Telephone Networks (PTSN) and Integrated Services Digital Network (ISDN) technologies. On-premise PBX Telephony is ideal for a company that has no plans to expand its telecommunication. They require ongoing maintenance and upkeep but offer the most control has customization.
  • Cloud-based PBX telephony multiple hosted by a third-party provider and can be accessed via the internet. They are typically more affordable than on-premises systems and are easier to set up and manage. Users can customize the PBX Telephony system to fit their needs and integrate other software solutions with an API. This solution offers remote working solutions to companies that are moving towards a hybrid workplace model.
  • Hybrid PBX telephony systems combine the best of both worlds, giving you the flexibility to choose which features and functions are hosted on-premises and delivered via the cloud.

Choosing the right type of PBX Telephony solution depends on your company’s communication requirements. You can refer to our phone systems buyer’s guide for more information on selecting the right PBX Telephony partner for your business.  

Benefits of a PBX Phone System

The primary advantage of PBX telephony is the significantly reduced cost of internal phone calls. The circuit switching occurs within the system, so the business doesn’t have to pay the standard charges for local phone service. 

They also provide access to the best contact center features, which may be helpful to companies:

  • conference calls
  • call forwarding
  • call queues
  • voice mail
  • caller ID
  • reporting and monitoring features

No matter which type of PBX telephony system you choose, you'll enjoy many benefits, including increased efficiency, improved customer service, and lower communication costs when having a reliable business communication mode.

What is the difference between PBX Telephony and VoIP?

Traditional PBX Telephony systems accept and make calls via landlines with Voice over Internet Protocol (VoIP) systems make and receive calls over the internet. 

Newer versions of IP PBX Telephony have made it possible for PBX Telephony to also evolve beyond landlines to communicate via the internet. In simple terms, VoIP technology is merely a different version of IP PBX Telephony. This allows PBX Telephony to also have the features that are popular in VoIP technology. 

Top PBX Telephony Vendors

Best If you're considering a PBX telephony system for your business, you must work with a reputable PBX telephony provider who can help you choose the right system for your needs.  

Nextiva is a leading provider of PBX telephony systems, and our team can help you find the perfect solution for your business.

You can refer to our PBX telephony phone system buyer’s guide to learn everything you need to know before selecting a phone systems solution provider. To explore more PBX telephony system providers and compare the best phone system providers, use our convenient comparison charts to help you select the right PBX telephony system solution provider for your unique business needs.

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