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What Is A PBX Phone System?

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Communication is essential for the success of any business. With this, you should have efficient business phone systems to enhance your operations. One phone service you can use for your business or organization is the PBX phone. Do you want to know more about this phone system technology? If yes, this article will guide you. 

PBX Phone System Definition

PBX means Private Branch Exchange System, which is a kind of private telephone network you can use for your organization. These phones are equipped with functional features that can help boost office productivity. PBX is a cost-effective phone system compared to other office phones.   

The PBX system manages advanced calling features and routing for internal calls and outbound calls. With PBX, you can have an office phone extension. It can transform how your company handles phone calls.  

PBX phone features  

PBX phones are loaded with innovative features that can help your business. These features include the following: 

  • Business hour settings : PBX phone solutions are able to route any incoming off-hours call to your round-the-clock a week customers support line and other branches.   
  • Extension dialing: It is a business-grade phone system that allows your entire organization to use a single telephone number for assigning extensions to each office employee. With this, incoming calls can reach specific targets while making the calling experience simple.   
  • Call conferencing: Conference calls have long been essential for your business’ and others’ success. A PBX phone can offer team chat for establishing conference calls easily. It can also streamline meetings and enhance employee productivity.   
  • Caller queues: Another feature of PBX is that it can tell incoming callers about the waiting time before the operator gets on the line. It can help to improve the customer service for your company.   
  • Detailed phone records and call recording : The phone system allows administrators to record, analyze and track phone calls. Call recording can help to collect information for new customer service employee’s training.  Archived calls enable your company to defer liability for litigation response.   
  • Voicemail to email : If you use a PBX phone that’s internet-enabled, you can directly start diverting incoming voicemails to the email addresses of the users. With this, you can establish Unified Communications on different platforms. It also allows users to access information quickly.   

How does it PBX Phone work?   

Modern Business telephone systems utilize Voice over Internet Protocol systems for sending a digital signal to users. Meanwhile, the PBX phone uses VoIP technology like voicemail-to-email.   

The traditional phone PBX uses physical phone lines which are connected to the PBX box. It has physical hardware that comes with telephony switches that distribute PBXs to trunk lines or multiline telephones. On the other hand, Wireless IP phone systems with PBX use digital phone signals instead of analog phones for sending calls. You only need high-speed internet connections to access the system’s enterprise-grade features. In addition, IP phone systems are also hosted by providers of management service, including Vonage, Nextiva, and RingCentral.   

PBX cloud-based phone system can accommodate a high volume of calls and distribute them to specific teams or individuals. There are various types of PBX phones, so you can choose the right one for your organization’s needs.

PBX phone types  

There are various types of PBX phones. So, you can choose the best one for your business communications. To help you understand more of the kinds of this phone system, read more. 

PBX Phone

On-premises PBX 

An On-premises PBX phone is ideal with occasional maintenance costs. You can also upgrade PBX to a system that is IP-ready. 

Hosted PBX 

With a hosted PBX, you can manage your employee’s desk phone from your web browser. You can also adjust PBX features such as call routing, call recording, hold music, auto attendants, and call forwarding. It is a cloud-based PBX that you can manage directly to your devices, including your mobile phone. The cloud-hosted PBX has a low monthly cost.   

PBX SIP trunking 

If you wish to experience the benefits of VoIP phone systems, this type of phone system is the right choice for your organization.   

Advantages of PBX phone to your business  

Using the PBX phones in your company comes with many benefits. These benefits include the following: 

Complete and manage calls  

One benefit of using the PBX system is that you can manage calls on a pre-programmed schedule. Operators may permit or restrict international calls to prevent high costs.   

Customize greetings 

With this VoIP Service, you can customize greetings using recorded messages. It can also give alerts to customers about service or sale problems.   

Transfer calls between departments and users easily  

The PBX system like Microsoft Teams Phone, allows you to keep connections without dropping calls. It has interactive voice menus to transfer calls using a cold transfer or warm transfer.   

PBX Phone

Connect different office locations  

PBX is among the best business productivity apps you can use to have an automatic branch exchange. It also has an interactive voice response, so your employees can connect to each other. A PBX system is also beneficial for remote workers.   

Call center operation 

With VoIP systems, you can operate a call center to manage your customer support and sales team department. It can also hold internal and external communications.   

Primary Rate Interface 

The PBX phone features Primary Rate Interfaces that enable you to customize the system based on the needs of your business. It also has a common two-wire interface to enhance communication in your business.   

Few more

Boosts business productivity 

The PBX system comes with additional communication channels that can help enhance the productivity of your team. The Voice communication and screen sharing offered by PBX can help enhance team collaboration. It also provides Virtual solutions and software integration like Dynamics 365 CRM. With this, you can sync contacts and handle information in one location. 

Enhance your business’ customer service 

The PBX system can also be a source community that can enhance your business’s customer support. With this, you can gain the trust of your customers.   

Affordable communication solution  

Unlike other phone systems in the market, the PBX phone system is more affordable. Virtual and hosted PBX systems can help you gain more savings. Thus, it has lower monthly service fees and setup. Additionally, it has a cheaper cost per call.   

Advanced features 

Despite its affordable cost, it can provide you with more advanced features for your company’s communication needs. It features transcriptions, automated attendants, voicemail, and call routing. You can save more through call routing internally without leaving your phone system.   

  • Integrations: With an internet-based system, you can use VoIP technology. You can integrate it with CRM platforms and apps using efficient developer APIs. These developement options are available in Microsoft Teams enabled phone system.
  • Automation : If your company receives a high volume of calls, PBX can be for you. It enables you to have a simple menu system. With this, you can save more time and effort for your business operations.   

Now that you have learned about the benefits of the PBX phone for your business let us know about its cost.   

Cost of PBX phones

If you’re conscious of budget, the PBX phone can be the best solution. It can be affordable at $20 monthly or costly due to annual maintenance, service, and setup. Furthermore, the traditional PBX system needs analog-compatible desk phones, which may also add cost. If you plan to use PBX in your business, the following are some PBX-related costs. 

Phones – VoIP-enable devices and desk phones$500 for each unit
PBX box – Box cost and installation fees$1000
Monthly service fees  $19.99 monthly per user


VoIP-enable devices and desk phones can cost up to $500 for each unit. Expect that you can also spend more on Bluetooth, touchscreens, and video chat features.   

PBX box 

A traditional PBX can cost about $1,000, which includes the box cost and installation fees. You may also spend on landline wiring installation in your office.   


PBX systems need hardware and software updates from a professional. It also needs on-premise maintenance. Virtual and hosted PBX systems can also undergo updates and maintenance, but it usually happens in the cloud.   

Monthly service fees  

If you want to access the top solutions, you need to pay a monthly service fee. RingCentral hosted PBX system can cost $19.99 monthly per user, but you can choose other providers with varying costs and services.   

Meanwhile, a PBX system is a good investment for your budget, time, and effort. It can provide you with a comprehensive service for your business’ specific communication needs. As a result, you can enhance team collaboration. In addition, you can also access internal and external communications.   

What are the top providers of the PBX phone ? 

There are many providers of PBX systems in the market, so you should carefully choose the best one that can meet your needs. To help you, the following are the best providers of PBX systems in the industry. 


Microsoft has come out as a major player in the PBX phone system provider along with Microsoft Teams. It empowers users with PBX phones along with Microsoft 365 capabilities. It extends the VoIP capabilities of your system with everything kept safe with Microsoft security best practices. Consider Microsoft Teams consulting for getting started.


Nextiva can provide you with a hosted PBX system that can help you grow your business. They offer entry-level plans at a lower cost. The provider also has advanced call management features that can meet all your communication needs.   


Another top provider of the PBX system is RingCentral. It can offer you with hosted VoIP business solution that allows your company to access team chat, video, calls, and SMS. With this internet-based communication service, you can scale your business from beginning to end.   


Vonage offers a virtual PBX system for small businesses. It has cheaper pricing plans but easy-to-use communication solutions.   

Frequently Asked Questions  

Do you need a high-speed internet connection with the PBX phone system? 

If your business uses a traditional PBX system, you don’t need a high-speed internet connection. However, you may need a stable and fast internet connection if you choose internet-based PBX systems, including virtual, hosted, and IP systems. 

Is it worth it to use a PBX system for your business?   

If you wonder whether it’s a good decision to use the PBX phone in your company, the answer is yes. It is equipped with advanced features that can improve internal and external communications with your business. With that, you can have an efficient communication tool at an affordable cost. Moreover, you can access the features of the system on your different devices.   

Should you prefer a traditional PBX system? 

If you want a simple and affordable phone system for your business, you can still opt for a traditional PBX system. However, if you wish to upgrade your business, you can choose other PBX systems to meet your specific needs. It depends on you on which one can work best for your business.   


To sum it up, PBX or private branch exchange systems are beneficial to improve business communications. If you want to have more cost savings, the PBX system is right for you. It is cost-efficient since the features of the system updates regularly. The system also enhances the productivity of your team that can help your business gain more sales.    

You can also use PBX as your business’ 8-Line Business Phone System. It also has additional hardware that allows your business to use multiple extensions. With its lower cost, advanced features, and efficient communication tools, you can make your business more profitable. What are you waiting for? Choose your PBX system now!

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Errin OConnor

Errin OConnor

With over 25 years of experience in Information Technology and Management Consulting, Errin O’Connor has led hundreds of large-scale enterprise implementations from Business Intelligence, Power BI, Office 365, SharePoint, Exchange, IT Security, Azure and Hybrid Cloud efforts for over 165 Fortune 500 companies.

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