What is PBX Phone System? Getting Started with PBX

What is PBX Phone System? Getting Started with PBX

If you are here, you must have started a business and everyone told you to get a PBX phone system. But, do you even know what is a PBX phone system and why do you need it? Fear not. Here are our 5 minutes read on all you would need to know about the system. For a bonus, we are also throwing in its benefits as well. Let’s dive right in.

What is a PBX Phone System?

The word PBX stands for Private Branch Exchange, which in layman’s terms means a private telephone network for within your company or establishment. It also provides a connection between your office and the outside customers too. It is mostly to communicate between staff and the outside private telephone lines. Those outside private lines are referred to as PSTN. To put it in simple words, it is your customers calling in from their private home numbers.

How does PBX work? 

PBX phone system performs multiple functions for a company which are not only convenient for the employees but also provide ease to the customers in communication as well. It mainly consists of an internal and external network. Internal one can be of different types depending on the service you choose to install at your establishment. External refers to communication outside of the company network.

Most of the modern-day PBX phone systems use the internet to convert calls into data packets making it easily transferable among different coded lines. This ensures multiple customers on one number where they are not turned away immediately if the operator is busy. The system provides ACD (Automatic Call Distribution) queue which lets your customer stay in a virtual waiting room over the phone until they are connected with an operator.

PBX system

The functionality of the system depends on the type of PBX service you opt for. However, here’s a list of general equipment a company might need to establish the network from scratch:

  • Quality computer with sufficient memory to manage switching calls within the PBX and incoming and outgoing
  • Copper wires to connect the internal PBX system inside the company
  • Multiple phone lines or trunk that terminate at the PBX system
  • Wired or wireless Unified communications (UC) router
  • Universal Serial Bus (USB) Phone Headset, VoIP and SIP (Session Initiation Protocol)
  • VoIP gateway
  • IP PBX
  • Internet router – preferably with a stable connection
  • Cables, cabinets, cupboards
  • Uninterruptible power supply (UPS) – to ensure power outages don’t interrupt businesses
  • Telephony application server – installed by an expert

Types of PBX Phone System

Traditional PBX system requires copper telephone wires to be laid out throughout your office space with a separate server or storage room for its main equipment. This is called on-site or on-premises PBX system. Its installation and maintenance require moderate to high fees depending on the company you choose. This system also requires updates as well. You can also have it upgraded to an IP-ready one, too.

Most modern-day companies prefer a host PBX system which allows you to manage your workers’ phones from a web browser. For that, you would need to purchase the system from a service provider and install them at your office. This is also called cloud-based PBX. This is significantly cheaper than on-site PBX because the service providers take care of all the bugs and maintenance of the system. Here at Callersuite, we provide our clients with sustainable packages.

PBX SIP Trunking is a type which allows you to take advantage of the VoIP benefits. It provides voice service for your company’s PBX. You can create multiple voice channels on it as your company grows.

What are the Benefits of PBX Phone System?

On-site Extension Dialing:

An entire office can share a single telephone number for effective communication. Moreover, you can also assign unique extensions to each employee in the office. This makes it convenient for incoming calls or customers to reach their intended goal. Thus, resulting in a simple and hassle-free calling experience.

Setting Business Hours:

This feature allows you to pre-set codes which transfer calls to fixed lines for when the office is closed. If the organization is large, you can also transfer the calls to another branch without confusing the customer. Additionally, this also ensures 24hour helpline.

Call Waiting:

The nightmarish waiting on hold for a representative is what puts off many customers. This feature ensures the caller is made aware of the time remaining until they are connected with an operator. Furthermore, an upgrade of the same system provides you with the option of adding music or announcement while your customer waits on the line.

Conference Calls:

No business can thrive without the ability to hold a conference among the employees or clients. PBX phone system easily connects people within and outside the establishment ultimately improving productivity.

Voicemail-Email Service:

Users can set their PBX phone systems to divert incoming voicemails to email addresses. This is possible when the system is internet-enabled. It combines communications across different platforms and delivers messages effectively.

Call Recording:

With this feature, users can track, record, and analyze phone calls for feedback and improvement. Through this, companies can train new customer service employees. However, they can also be used to thwart any liability claims or complaints.

Call Costs:

Intra-company calls are free of charge on the standard PBX phone system while international or external ones can be directed on VoIP (Voice over IP). This significantly reduces day to day expenses of a company especially if you are a new business.

Off-site Availability of Employees

When you avail Host or Cloud-PBX phone system, your employees or operators can receive calls and make them off-site as well. The customers would not even know the difference due to the quality and clarity of the line.


Once the system is installed, the overall cost of telecommunication is reduced. Moreover, the time consumed in maintaining manual assistance is significantly cut down as well. Thus, small or medium business can run effectively without hiring too many employees.

Upgrade and Future Expansion:

Upon expansion of your business, you can always upgrade your PBX system accordingly with your service provider. Furthermore, it has the added benefit of continuing with the same system. You would not need to purchase a new system. Thus, eliminating training staff for a different service from the beginning. This also ensures effective use of the administration’s time.

Take Away

Whether you’re small enterprise or large, Caller Suite allows you a mobile PBX so you will never have to use your personal phone number for business. It is affordable and light on your bank as well.

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