With a PBX System, whether your business is a small one or a large enterprise, you can handle customer calls with relative ease. This article examines what a PBX System is and how it works. We also show you how having a PBX System can help you be more productive while reducing costs for your company.

What is a PBX System?

With the acronym PBX standing for Private Branch Exchange, a PBX system is a private telephone system used within a company to manage incoming and outgoing calls. Unlike a public telephone network, a PBX system is hosted by the company (or a third-party contractor) for its private calls. PBX systems started as manual telephoning systems, where multiple landlines led from the central PBX box to every department. From here, calls could be directed to adequate quarters. This was, of course, limited to a single building.

Today, PBX systems use digital technologies to manage and route calls. With PBX systems, companies do not need to have multiple phone numbers for each department. Customers can call one central phone, from which calls can then be routed to the right agent or department.

Today, many companies are opting for Internet-based PBX systems like PBXPlus and recording improved results in phone calls to and from the business. With a pbx system, large firms with a high volume of calls can seamlessly manage inbound calls. Smaller companies can also improve their operational efficiency, boosting productivity and customer service.

When Should You Use PBX Phone System?

As a business handling important inbound and outbound calls, it is crucial to have an efficient system for phone service. PBX systems make the process easy and seamless. Consider using a PBX virtual phone system for efficient, seamless customer service, whether you are a small business or a large one.

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How Does a PBX System Work? What Do They Provide?

There are several kinds of PBX systems, and the way a PBX system works will depend on the type of technology it uses. The most common PBX systems are traditional, IP-based, and hosted or virtual PBX systems.

Traditional PBX Systems

Traditional PBX systems are becoming less popular, although a few businesses still have them in their offices. These PBX systems use landlines that connect every department or extension to a central station. From this central hub, calls are rerouted to a chosen department.

Traditional PBX systems are more expensive than other options, as the company has to lay down landlines physically. Additional costs include equipment, telephones, and telephone company bills. Also, the company will need technical staff to maintain and operate the landlines for efficient service.

Traditional PBX systems are also limited to the building where they are installed. This means they are less flexible than modern options.

IP-based PBX System

IP-based (Internet Protocol-based) PBX systems use the internet to manage and direct calls from long distances. IP-based systems use VoIP (Voice over Internet Protocol) to redirect calls to employees who have an internet connection. With an IP-based PBX system, companies can direct calls to employees anywhere globally, and they can respond with their smartphones. This eliminates the need for landlines and buying telephone equipment.

IP-based PBX systems are excellent for larger companies that can install and maintain a network and the necessary equipment.

Hosted PBX System

A hosted or virtual PBX system is one where a third-party provider hosts the system, and the company pays the provider for the service. Like an IP-based PBX system, a hosted PBX system also uses Voice over Internet Protocol (VoIP) to manage incoming and outgoing calls. However, the company doesn’t need to pay for any equipment.

A hosted PBX system provides all the advantages of an IP-based PBX system without requiring overhead costs. Hosted systems are popular among small businesses as they offer several amazing features for only a small fee. With a hosted PBX system, there is no need to have a whole setup for your telephone systems or hire a technical team to install internet cables. All you need is to contact a provider like PBXPlus, and you’ll get premium telephoning service.

PBX System Advantages That Will Save You Time & Money

Here are some advantages offered by virtual PBX systems that will save you time and money:

Ability to Adapt Quickly

With a virtual PBX system, you can easily increase or decrease the scale of your telephone system, with no need to install any new equipment. All you have to do is add more employees to the system, and you can handle more calls if need be. And if traffic is low, you can decrease costs by removing unused lines from the system.

Adding new team members is easy with a virtual PBX system, requiring no technical training. It only takes a few clicks, and you’re set to expand.

Ability to Handle Large Call Influxes

During busy periods, a PBX system can manage high volumes of calls. It automates the process of directing calls to the right department so that they can respond effectively to the customer’s signals. This eliminates the long wait periods, allowing customers to get responses quickly.

Cheap International and Long-distance Calls

With a hosted PBX system, calls between extensions are effectively free. This means that you can redirect calls to agents worldwide with minimal costs to your business. VoIP bypasses the elevated prices of international and long-distance calls, allowing you to save thousands of dollars in phone bills for your business.

Reduced Hardware Costs

Traditional PBX systems require businesses to lay down landlines, purchase telephones, and install new equipment. These costs may amount to several thousand dollars depending on the size of the company and the number of employees.

However, with a hosted PBX system, you don’t need to install any new hardware at your company. You also don’t need to buy any telephones, as employees can be added to the system using their smartphones. This way, you save thousands of dollars for your company.

Lower Operational Costs

With virtual PBX systems, businesses can save on the costs of hiring and paying technical staff, handling large telephone bills, and more. This way, maintenance, and operational expenses drop massively.

6 Amazing Features of a PBX Phone System

Here are a few of the fantastic features that you’d get when using a PBX phone system like PBXPlus:

PBX Phone System Features

Auto Attendant

With an auto-attendant, you save your receptionist the stress of redirecting every inbound call. Using a set of recorded options, the auto attendant directs calls to the appropriate staff based on specialty and availability. Fewer calls would need a human receptionist, saving money for your company without compromising efficiency.


When no agent is available, a PBX system can take the customer’s query as a voicemail, record it, and send it to the appropriate quarters. An agent can then listen to the business voicemails at their next shift and respond accordingly. Many PBX systems also offer voicemail transcription, where the agent’s voicemail can be converted into text and sent to the customer.

Active Call Controls

Virtual PBX systems put the control in your hands, allowing you to ensure that each call meets the quality you desire. With options such as call monitoring, call whispering, and call recording, managers can provide adequate quality control and get better service from their agents.

Call Routing

With a virtual PBX system, calls can be directed to agents anywhere in the world, provided they are available. Call routing on virtual PBX systems takes advantage of WiFi networks and cellular data connections, allowing agents to respond over various internet-enabled devices.

Interactive Voice Response

Powered by AI, an Interactive Voice Response (IVR) functions as a receptionist, helping businesses direct calls to appropriate departments. Although similar to an auto-attendant, it is different in some respects. Rather than tap a button, customers can say the department they’d like to speak to. With IVR, PBX systems mimic human-style conversation.

CRM Integration

With a virtual PBX system, you can track customers better by integrating with other CRM apps you already use. This helps you provide tailored service to customers with each call.

How PBX Systems Can Help Employees Be More Productive and Reduce Costs

PBX systems are great for helping employees provide excellent service. They help them become more productive by:

  • Reducing fatigue through automation
  • Allowing employees to work remotely
  • Providing insights with call data
  • Facilitating collaboration


With a PBX system like PBXPlus, your business can take advantage of advanced technologies to provide more efficient telephone service. To boost the quality of your business calls, consider using a PBX system.

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