What is a PBX Phone System?

Are you looking to learn all about PBX phone systems?

PBX Definition

PBX stands for Private Branch Exchange. It’s basically a private phone network, made to be used in the office environment of a company or organisation.

Here’s a useful explainer video:

So, in summary, a PBX phone system allows users within the phone network to make phone calls both:

• internally (to other users within the private network),
• externally (to users outside of the private network).

And with a PBX phone system you can also use a variety of communication channels including:

• Voice over Internet Protocol (VoIP),
• Integrated services digital network (ISDN) and
• copper wire or plain old telephone service (POTS), otherwise known as analog
• a combination of the technologies in the points above (hybrid)

Advantages of using a PBX phone system include:

• more phones than physical lines
• free user-to-user calls within the internal network
• additional features like:
  • IVR
  • transfer calls
  • voicemails
  • call recording

Drawbacks to using analogue PBX phone systems

Before digitally enabled PBX phone systems, traditional analogue (copper wire) PBX phone systems are constrained by certain material limitations.

Disadvantages of analogue PBX

For example, analogue systems were limited to have available only a certain number of internal extensions and external lines (trunk lines).

Also, analogue PBX phone systems were typically sold with proprietary handsets which alone were compatible.

So essentially, as a client, you were obliged to use the vendor’s hardware.

This raised the ‘cost of changing service provider’ because to do so would mean buying new hardware plus retraining staff to use the new system too.

Open standards IP PBX

Now, through the emergence of open standards-based IP PBX lines, the internet is the means for carrying the phone calls.

Advantages of IP PBX

Switching from an analogue PBX to an IP PBX unlocks so many limitations, but falling into 5 main categories:

1. simpler, lower operational costs and fewer vendor switching costs
2. unlimited potential for adding internal extensions and external trunks
3. smart digital functions offering real business benefits, like:
   • call routing
   • digital receptionists
   • queues
   • conference calling
4. integration (i.e. it works with so many other systems like CRMs (customer relationship management software), PMS (property management software) etc.
5. easier installation & configurations

A Short Summary of Business Phone Systems

Efficient management of multiple phone lines has always required technological help.

Key Phone Systems

Before PBX,  KTS (key telephone systems) were the original multi-line telephone system. It worked by feeding multiple phone lines to each handset.

These lines were controlled by buttons representing individual lines on the phone itself. Users simply would pick which lines to connect to and press the related button.

From Switchboard to PBX

Beyond this type of business phone system (controlled by a central operator that manually regulated the exchange i.e. a traditional switchboard) more recent technological advancements have led to automated exchanges called a private branch exchange or PBX.

SIP Trunks for Capacity, Scale & Cost-Saving

Newer still are SIP (session initiation protocol) and IP-based phone systems. These operate by making virtual connections between two phones performed by initiating and terminating sessions occurring in ‘real-time’ using Voice of Internet Protocol.

This time, rather than copper wiring, the calls are physically carried over an ethernet cable.

An single SIP trunk has the capacity to carry connections to many phones including desk phones, soft phones, mobiles phones as well as, multimedia communication.

In the case of call centres, one single SIP trunk can carry hundreds of channels, each channel equalling a single line. The potential for concurrent calls from one single SIP trunk is impressive. This gives great cost advantage and scalability to businesses.

Adopting an IP business phone system

Offices with existing local area networks are able to use this to run IP-based phone system.

No new infrastructure is needed. Modern SIP phone systems rely on the internet to transmit calls.

And because the system uses the internet, this itself opens up a whole host of possible phone options including:

• IP desk phone
• soft phones
• mobile phone apps
• web phones…and more

What a modern phone system can do for your businesses

The real business benefits of a modern IP PBX phone system are not only realised by big business. Even small businesses have real material advantages to gain with an internet-based communications system.

Benefits of IP PBX for business

• Cost-savings: maintaining the system is shared with your general IT maintenance costs as the IP PBX would piggyback your existing LAN (local area network). Also, there are cheaper tariffs with a modern system.
• Maintenance: no need for costly on-site visits. Remote support suffices for most issues including system wide updates.
• Over internet: users can now access the business phone system anywhere there is an internet connection. This gives lots of operational flexibility that prior to IP PBX was not possible.
• Telecommuting: IP PBX has opened the door to companies and organisations offering staff the opportunity to work almost seamlessly from home. Colleagues can make internal calls, use call traffic control features like routing etc. just as if they were in the office. Optimal remote working conditions wouldn’t be possible without this.
• Scalability: growing your team? Simply, add as many lines as necessary  via the web interface in minutes and plug in a new phone handset.
• Call centre features: these are the automated functions that take the strain of call management off your staff members and increase productivity. Call queuing strategies, call recording and more assist with keeping your business communications on the front foot continuously.
• Communications apps: modern business embraces modern communications. Applications like video conferencing software, instant messaging and social media add variety to the way we talk in business.
• Integration: modern business currently demands cloud compatibility. Everything from accounting to HR and marketing workflows are now tethered to the internet via web apps. Having a communications platform that easily integrates makes for a much easier work life.

What to look for in an IP PBX provider?

• Simple pricing: there are flat rate providers out there which don’t have mounting charges for additional users.
• Fair charges for usage: look for providers that will only charge your for simultaneous lines used, rather than total lines occupied.
• Complete communication: seek a multimedia-ready solution that handles Whatsapp, video conferencing comfortably in its stride.
• Open platform: no tie-ins. Get a provider that will operate an open system offering you freedom to choose which elements you plug in or add on.
• Compatibility: regardless of browser or device operating system used, your provider’s system should swim and not sink.
• Scalability: make sure that the licensing arrangement is flexible enough to allow you room for growth without being financially penalized.