Are you planning on updating or installing a business phone system and are wondering if a PBX phone system is right for you?

At Network Telecom, we’ve been in the telecommunications industry for more than 40 years, and we’d love to share our expertise with you.

Today, we’ll explain what a PBX phone system is, how it works, the different types available, and outline the benefits to help you make your decision. So, let’s get started.

A PBX system lets you communicate with callers inside your company and with outside callers

PBX Phone System – What It Is and What It Can Do for You

A PBX phone system is a private telephone network that is used by an individual business or organization. The letters PBX stand for Private Branch Exchange. If you have a PBX system, you can communicate internally with callers from within your company and externally with outside callers.

A PBX system differs from a residential telephone in that your home phone runs on an individual phone line that you pay for. However, a PBX will give you business free desk-to-desk calling through different extension numbers without having to pay for a separate phone line for each individual phone.

In addition, a PBX phone system gives you features that a residential landline doesn’t and your business will find these incredibly helpful, such as:

• Making calls free of charge between internal users
• Transferring calls to extensions
• Having more phones than physical phone lines
• Having voicemail service
• Doing call recording
• Having interactive voice response and call queues for customers
• Allowing business hour settings for routing calls after hours

With a PBX phone system you don’t have to pay for a separate phone line for each individual phone

Different Types of PBX Phone Systems

There are several different types of PBX phone systems including:

• Traditional Analog PBX
• IP PBX
• On-Premise PBX
• Cloud PBX

Here is a breakdown of each type of PBX.

Traditional Analog PBX

Traditional Analog PBX uses analog (traditional phone lines) to operate. In the past, this was your only option for a PBX phone system. With a traditional PBX phone system, you are limited to a certain maximum number of outside phone lines, known as trunks, and your users have to share the outside lines if they want to make an external call.

So that means if you have 2 outside lines that are both being used, you will need to wait until one is free in order to make your call. You also only have a maximum number of internal phones or extensions.

The equipment needed to run a traditional PBX system is very costly to purchase and to maintain, so it is quite difficult for businesses with less than 200 or more employees to afford one.

With a traditional analog PBX phone system you are limited to a certain number of outside phone lines

IP PBX

IP PBX, also referred to as VoIP PBX, uses the internet protocol (IP) as their communication channel instead of the traditional analog telephone lines.

The biggest advantage of the IP PBX is that you can practically have an unlimited number of extensions and trunks so you are not restricted when you need to increase the size of your system. IP PBX gives you incredible flexibility in that it allows you and your staff to be available to take calls no matter where they are. You can take business calls on your smartphone, computer, or other mobile devices, as long as you have an internet connection.

IP PBX also allows you to have more complex features that would be very expensive or unavailable with a traditional analog system such as:

• Auto-attendant that will answer and transfer callers to the right department or employee
• Voicemail that will transcribe the audio message into an email that goes to your inbox
• Text messaging from your business line instead of your personal one
• Video and web conferencing that let you share your screen to view and discuss documents or slide presentations
• Ring groups that let you send calls to everyone that is in that particular group
• Instant messaging so you can send online messages to your co-workers
• Conference calls that will let you host calls with hundreds of participants all at once.

IP PBX also allows you to have more complex features

On-Premise IP PBX

An on-premise PBX phone system is a lot like a traditional analog system in that the system itself is located at your facility, or “on-premise”, and not at your service provider’s facility. You have IP phones that connect to your IP-PBX server through a local area network. Your calls go through a traditional phone company as well as a VoIP system.

Once you purchase and set up your equipment to run your on-premise IP PBX, you will have lower monthly costs than if you choose a Cloud PBX or “hosted” option. In addition, you will have more control over your phone system because it belongs to you. You can choose when to update it and you will have the ability to use SIP trunking to lower call costs even further.

You are responsible for the maintenance of your system as well as any training your staff would require.

Because of the high capital investment and expertise needed to run the equipment, this may be a better choice for a business with 200 or more employees.

Discover how an IP PBX works

Cloud PBX

If your business has 50-200 employees or less, then Cloud PBX may be a good fit for you. Cloud PBX allows you to do the same things as on-premise PBX, however, instead of having to house all of your equipment on-site, all of the hardware and software required to run cloud PBX is located in the cloud. This means that your cloud PBX system is powered by an internet connection and you don’t have to store any of the necessary equipment at your location.

Probably the biggest advantage of using a cloud PBX is the lower cost to set up and install it. You don’t have to purchase all of the expensive equipment needed to host your own PBX. The equipment belongs to your cloud PBX provider. You are simply paying for a service.

The only equipment you may need to purchase is desktop phones that have VoIP capability. Additionally, the setup itself is much easier, for example, it’s usually a simple case of plugging your desk phone into a router. All of your calls and features are handled by a server located on your provider’s premises.

In addition, you can choose and only pay for the features that you need, and you won’t be responsible for any ongoing maintenance.

With Cloud PBX you only pay for the features that you need

Need a PBX Phone System? Contact Network Telecom

If you are looking to purchase a new PBX phone system, contact the telecommunication specialists at Network Telecom. We have been selling, installing, and servicing every type of phone system for over 40 years.

We can even help with training your employees on the features of your new phone system so that you can use it as efficiently as possible.

If your phone system is not working as it should, our trained technicians are available to help 24 hours a day, 7 days a week, 365 days a year. We carry a huge selection of parts in order to quickly solve any component issues you are experiencing. If you are having a telecommunication or networking issue, we can resolve it quickly and professionally.

In addition to our accredited and certified technical expertise, we offer:

• Consultative Sales
• Cloud Services
• Ongoing Support
• Voice Mail Systems
• System Design + Consulting
• System Admin + User Training
• PA Systems
• VoIP Specialist
• Network Cabling