What is a PBX Phone System?

Written on Apr 10, 2024

We have listed down the different types of PBX phone systems to help you understand which one will be the perfect fit for your business.

First, let's understand about the PBX phone system.

What exactly is PBX?

Private Branch Exchange (PBX) can be perceived as the internal telephone network for your business. Users can communicate with each other through internal lines/phones and even make/receive external calls, thanks to the PBX phone system.

Your business can get voice mail, auto-attendant, call queue, call transfer and call forwarding features through PBX phone system. By leveraging Voice over Internet Protocol (VoIP phones) or digital phone lines, PBX systems are operated. And, the physical phone lines entering into your business can also be split into multiple lines.

Best part: Calls among users are free!

Types of PBX phone systems

If you have shortlisted the PBX phone system for your business, then there is still some decision work that needs to be made. Below are the types of PBX phone systems we have listed for you:

What is a PBX

Analog PBX Phone System

It gained a reputation for being a typical telephone system as it's been used by businesses since decades. Connected through Plain Old Telephone Service (POTS) lines to the Public Switched Telephone Network (PSTN), it can even handle fax transmissions using physical phone lines.

Calls can be made or transferred within a certain location through the analog PBX phone system. Besides, they can even handle outgoing/incoming calls by using outside lines.

Please note that they were around when traditional copper lines were in vogue, and the time when the Internet was never heard. Thus, you cannot expect the latest features such as remote working ability, converting voicemail to email or any multimedia services.

Let's say in the near future, your business grows, then you might have to add new telephone wires or new jacks to accommodate new employees, it can be a problem.

Although a little old-school, they work fine even when there is no Internet connection. Amazing!

VoIP PBX Systems

IP PBX or VoIP phones work just like traditional PBX and can be best described as a new version of private branch exchange.

How does IP PBX differ from traditional PBX systems?

Hosted PBX

Offers extra features

More cost-effective option

Instead of traditional phone lines, it uses Internet protocol

Voice gets converted into data, later to be transmitted through the Internet. Vice-versa.

Maintenance is super simple


Video conferencing

BOYD (Bring Your Own Device)


On-Premises PBX system

It is a little different from PBX telephone systems but still leverages VoIP phones technology to manage telephone systems. Please note that servers managing incoming/outgoing calls are maintained on-site. But the features are still the same offering support for mobiles devices, voicemail to email conversion and using Internet connectivity.

Challenges of On-premise PBX:

Initial upfront cost of installation

Need to have IT staff with good expertise

Proper maintenance of phone systems

What is PBX Phone System

Good part:

After expenses gets covered, you will be free from fee raises as cost goes down with time

Lets you retain relationship with current phone service provider

Flexibility to configure your system internally

Cloud PBX Systems

Cloud PBX, a subtype of an IP phone system, is also described as hosted PBX. It runs by leveraging Internet connection to VoIP phones service providers. Except physical phones & an Internet connection, no on-site equipment is needed, since everything is handled by the service provider.

All incoming/outgoing calls are routed through the service provider to transmit the voice to data packets and even handling calls off to Public Switched Telephone Network (PSTN).

All you need to do while using hosted PBX phone systems is a strong broadband connection to the Internet that supports many telephony devices such as smartphones and office conference phones.

Benefits of opting for Hosted PBX Phone Systems

Integration with CRM, Microsoft Teams, & other 3rd party systems.

Plug-and-play set up

Ideal for small businesses with no funds to invest in telephone infrastructure

Features to empower customer support teams

Collaboration features that include conferencing, instant messaging, and screen sharing

Supporting on-site & mobile workers

Easy installation and maintenance of unified communications systems


No hardware equipment & professional IT staff needed.

Benefits of On-site PBX

Lesser operational costs

Extra control by owning equipments

Building relationship with telephone company

Zero annual or monthly licenses/subscription fees

Much ability to determine security level

We support all telecommunication services and needs. Please remember to keep Bulk Solutions in mind for your telecommunication needs where we value Quality and Reliability above all else.