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The PBX Phone System: How Does It Work and What Is It?

One of the most important things in a modern office is for communication to be streamlined. Whether the telecommunications being dealt with are external or internal, it's important for businesses to have infrastructure which lets their people connect easily. Naturally, this requires the company or organization to make an investment.

When an office manager is looking for the best phone system for a small business, they are bound to see a common thread in major manufacturers' catalogues: the PBX phone system. Of course, these catalogues are typically designed well, and the telephone systems are impressively showcased. However, there's no overview of operating a PBX phone system covered at all.

What is a PBX phone system?

The acronym PBX stands for Private Branch Exchange. Basically, a PBX phone system is a telephone network that's private which supports a variety of features that are quite handy while general telephone service occurs.

What features of PBX phone systems are helpful to businesses?

  • Conference Calls: No matter what industry you're in, your company or organization's success relies heavily on conference calls. Meetings can be streamlined with conference calls being established. In turn, the productivity in your office will improve considerably.

  • Extension Dialing: A whole office can share the same telephone number, with each employee still getting an extension that's unique to them. In this way, incoming calls can reach the intended party quickly while the calling experience is simplified.

  • Hold System for Calls: Being on hold can be rather stressful, and nobody really likes it. However, it's always helpful to at least know the duration of the wait, even if it's a rough estimate. When you use a PBX phone system, incoming callers will have a concrete idea of their waiting time before getting hold of an operator. By managing the expectations of the people calling, your overall customer service will improve as well.

  • Settings for Business Hours: Off-hours business calls can be rerouted when you use PBX phone solutions. There will be codes that are pre-set to different phone numbers. Large offices with multiple branches can then have off-hour calls routed to a customer support line that's 24/7 or to a branch that's still open.

How does the PBX phone system work?

Back in the day, complex analog switches that were manually controlled by telephone operators made up PBX phone systems. In today's modern timeline, voice-over-IP (VoIP) systems are in place. Digital signals are sent to and from users with this technology. Using VoIP technology is crucial when assessing the features offered by the system. When the incoming call is converted to a digital signal, the system will then manage it like it would other digital information. That way, digital PBX systems get platform-neutral solutions for handling incoming calls.


PBX stands for Private Branch Exchange, and this phone system is basically a private network. It supports a variety of features that are handy while general telephone service occurs. Modern times have seen PBX phone systems use voice-over-IP (VoIP) technology to convert and route incoming calls.

Are you looking for cloud PBX services? Contact Bracer today! We specialize in bringing enterprise-quality IT service solutions to the small- and medium-sized business markets while remaining vendor-agnostic, transparent, and trustworthy.


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