PBX System

You may ask, what is a PBX Phone System or what is a PBX system? The acronym PBX stands for Private Branch Exchange, and is one of the different types of office telephone systems available in the UK. A PBX system is a telephone switching system used in businesses that seek to use a local line of communication within the company.

PBX systems are the most widely used telephone systems chosen by small, mid-size, and large scale businesses. It offers a range of options that can fit different requirements depending on their price. These business telephone systems are based on outside lines connected to the Public Switched Telephone Network. This offers a company greater flexibility when they are communicating internally or externally.

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PBX systems are digital and operate on hardware that can be stored on the company premises or outside the company, and is usually maintained by a third party firm. This system is one of the most commonly used internal telephone systems, and differs from the traditional phone system as they make it easier for companies to create a line to all of its employees. Therefore, there is one main number with extensions for each employee.

The different types of PBX systems allow the users to also send information to other analogue devices such as fax machines or modems by using 3-4 digit extension codes. 

With the continuous rapid change of technology, there are four distinguished types of PBX phone systems on the UK market, and each of them comes with different characteristics.

Traditional phone systems or analogue phone systems are the basic phone systems that require a physical exchange box inside the company. Traditional PBX phone system gives the company full ownership of the hardware.

This type of system requires a higher investment due to the costs of installation, while maintenance and support can be around £600 per annum.

The difference between PBX and EPBX is that the latter is 'electronic', that is, operations are based on a computer, not via analogue processes. Both systems serve the same purpose. Nowadays, most private telephone networks are called PBX, as nearly all systems have become electronic.

The hosted PBX system offers the same features as the traditional PBX but in a more flexible and efficient way. The hosted PBX is located off-premises and uses the Internet to route the calls. Hosted PBX systems can function over the Public Switchboard Telephone Network, over the Internet or over a combination of the two.

Hosted PBX system typically have lower costs since installing, maintaining and upgrading hardware is made by an external company. Monthly prices start from £25.

This type of PBX also known as VoIP PBX uses the Internet to transmit calls, it is a solution that is hosted on-premise. VoIP PBX is a combination of the conventional PBX with the advantages of VoIP technology. The IP PBX system connects both the VoIP PBX and traditional phones that have an Internet connection.

The IP-PBX system is also available as an On-Cloud PBX system where the calls are also made with the help of the Internet connection and the cloud system helps back up the data you want to be saved.

This is a suitable solution for companies that have an established network and wiring and also wish to experience the benefits of VoIP technology. Prices range from £600 to £9000.

This is the hosted solution for the VoIP PBX and uses the same flexibility as the IP PBX. The only difference is that, in this case, the software comes with a subscription to a hosting company instead of owning it.

Hosted IP PBX has the same features as the IP PBX but has lower set-up and maintenance fees. In the UK, the prices for the basic hosted IP PBX start from £6.99 per month.

Depending on the type, your PBX phone system cost can differ. Conventional systems cost around £800-£1,000 per employee; as opposed to this, IP PBX systems can be as cheap as £600 per employee but might cost up to £9,000 for expert systems. Hosted and virtual IP PBX systems work on a subscription model with prices from £25 and £6.9 per employee per month, respectively.

Keep in mind that conventional and IP PBX systems have both installation and yearly maintenance costs of around their purchase price.

The two main phone systems for businesses are the traditional PBX and the IP PBX. Comparing the two, they each have different features and also different advantages depending on your business needs. The following three key comparing points will give you a better understanding of the two options.

A Hosted PBX system offers the same features as a traditional PBX but in a more flexible and efficient way. The hosted version of PBX also has one main line for all employees with extensions for each employee. It also keeps the feature through which employees are able to send information to fax machines or modems by using a 3-4 digit extension code.

A Hosted PBX can prevent the company from having to invest in a costly and complex business phone system, while still being able to use features such as voicemail, automated greetings, conference call, call logs, and more.

Businesses differ, and their needs are distinct and various. But, when it comes to efficiency, they all have the same purpose: to create an employee-friendly working environment and to be efficient. Therefore, choosing the best communication system is an important step. Hosted PBX systems are, at the moment, an excellent option, as they bring the Internet and telephone systems into one product that fits every business.

PBX phone systems may vary on their features according to the type, model or provider. In general terms, PBX has the following features and components:

IP PBX is digital and operates based on its hardware and Internet server; which can be either stored on the premises of the company or an outside location. The system differs from the traditional PBX systems as the server maintains a database of all clients and their addresses (Session Initiation Protocol system- SIP).

The IP PBX system still retains the feature of the traditional PBX system, where a line is created for all employees, and each employee has their own extension.

When a user places a call, the PBX server recognises whether the call is internal or external. Based on the addresses saved, it routes the call through the SIP system in the case of an internal call, or through the VoIP in the case of external calls.

Depending on the costs involved, and whether the company has an established network or not, there are two types of IP PBX phone systems:

This telephone system uses the Internet to transmit calls and is a solution that is hosted on the premises the company. The IP PBX connects both VoIP PBX and traditional phones that have an Internet connection. The IP-PBX system is also available as an On-Cloud PBX system where the calls are also made with the help of the Internet connection, while the cloud system backs up the data you want to be saved.

This type of phone solution is suitable for companies that have an established network and wiring installations, and also wish to experience the benefits of VoIP technology. Prices range from £600 to £9000.

This is the hosted solution for the VoIP PBX which also has the same flexibility as the IP PBX system. The only difference is that, in this case, the software comes with a subscription to a hosting company, instead of owning it outright.

Hosted IP PBX has the same features as the IP PBX but has lower set up and maintenance fees. In the UK, the prices for the basic hosted IP PBX start from £6.99 per month.

IP PBX systems provide important advantages to its users. Considering it is an Internet based phone system, it takes advantage of the following key features to benefit your company. These things should be considered when determining if an IP PBX system is right for your business. A few of the advantages are:

Making the right choice for your business can be challenging. When it comes to choosing the perfect office phone system you may consider factors like costs, space, scalability. Overall, PBX phone systems offer solutions for every situation and provide a communication network that will help your business be more productive and efficient on the communication level. Whether you are a large corporation, or looking for small business telephone systems, PBX can be a solution for you.

If you would like to get professional advice and reviews about PBX office telephone systems, please fill in the form. You will receive up to four free non-binding quotes tailored to your company needs.