A PBX (Private Branch Exchange) is a commonly used business phone system that is considered a cost-effective way to communicate both internally and externally.

But how does a PBX system work and what are the benefits to your business?

PBX overview

PBX is a privately owned switch system (as opposed to the telephone company's public switch system) that allows all internal phones to be connected to one external line. 

So with a PBX business phone system, you only lease one line from your phone company, but many people can use it - each person will have a phone at their desk and their own extension. And because only one external line is needed, a PBX will save your business money. 

Speedy communication

PBX systems are great for fast, no-nonsense communication with co-workers or outsiders. The PBX also routes all calls between employees; everyone inside the business will have an extension number and will be able to communicate with co-workers easily.

PBX features

A PBX system can be simple or complex. Features can include things like auto attendant (an automated menu that allows incoming calls to be put through to extensions), call forwarding, voicemail, conferencing, and intercom and transferring functions. 

With a PBX you also have control over the numbers that can be dialled. For example, you can set up your PBX so that employees are unable to make overseas calls.

A note on PBX systems

According to Terence Tutaan from Telstra, with the advent of VOIP (Voice Over Internet Protocol) technology, you might soon be hard pressed to find a non-IP-capable PBX system.

"In the Telstra Business Systems program we have about 30 phone systems from six vendors, with only one model not IP compatible, and that one will soon be phased out," he explains. 

Benefits of using a PBX system

• You save money by only leasing one phone line for multiple extensions.
• You can control the type of calls made from the system.
• All you need to do is dial a four-digit extension.
• It looks professional - outsiders who call in and get auto attendant will have the sense that they're dealing with a well-run enterprise.
• New technologies such as VOIP make PBX an even smarter choice for cost-conscious businesses. 

A smart business phone system

A PBX system is a simple, straightforward means of processing calls internally and externally, and can allow you to do business incredibly effectively.

To find out about installing a PBX system at your place of business, contact a communications specialist today.