What is the real meaning of PBX? Many workplaces utilize PBX technology, but it is largely taken for granted. In fact, the roots of PBX as we know it go all the way back to the early days of the telephone. Now that modern advances have carried it into offices across the world, let’s look at the meaning behind PBX.
A PBX is a private branch exchange, or a telephone communications system that can relay internal and incoming calls to different users on local lines while harnessing and minimizing external phone lines.
More basically, PBX means that your internal telephone system uses a switch to relay calls. The switch is a hub where incoming and outgoing calls converge to be sent to their destination.
The private branch exchange switch began as a large, physical switchboard that used tangible telephone lines. As data transmission moves from the physical to the digital realm, the PBX has adapted to take advantage of technological advances.
What does having a PBX mean for business?
The private branch exchange unifies communication within a single enterprise. An enterprise is a business, company, or any project or undertaking that requires collaboration.
To ease the flow of collaboration, an enterprise needs easy, fast, non-stop communication within its organization.
A private branch exchange simplifies information delivery by:
- Simplifying contact information for large groups of people
- Centralizing business contact information for customers or potential clients
- Allowing multiple enterprise users to communicate at once
- Facilitating conference calling and business specific phone features
Why use PBX phone systems?
Since the system acts like a miniature version of a large-scale telephone switch operation, having a PBX means businesses need only to pay for the phone numbers and lines that they need to make external phone calls. The private branch exchange is completely internal, so communication lines can be split using extensions, or shortened numbers that tell the PBX to which phone to route a call.
Using the extension system, enterprise users can make unlimited internal phone calls with short, easy-to-remember numbers. The localized private branch exchange ensures that calls are fast and clear. Employees can retrieve and share information with one another via a PBX with minimal effort or productivity loss.
Business relies on good client relationships to bolster revenue and realize success. If a customer with a question or problem finds a business’s communications system difficult, that customer will begin his or her problem-solving journey with a negative attitude. Having a PBX means you’ll eliminate contact information confusion by routing external calls through a single business phone number.
Where did the PBX come from?
Private branch exchanges started as key telephone systems that used a switch inside the telephone itself to reroute calls. As businesses grew in scope and number of employees, the need for larger-capacity switches also expanded.
Manually operated private telephone switches began to appear in the 1960s. These systems used cord circuits that could be connected and disconnected so communication pathways could change. The setup was cumbersome and still required the use of a switch operator to run.
Automated electromechanical switches gradually took the place of manual systems. The terms for manual and automatic PBX systems were born but died quickly. The benefits of automatic systems outweighed manual PBXs too heavily.
In the 1990s, data networks began to connect on a worldwide scale as the Internet’s popularity swelled. An understanding of data packet transfer became a necessity for businesses on the rise, allowing for new, more convenient and affordable PBX systems like IP PBX to develop.
Where will PBX go from here?
The IP PBX or voice over internet protocol (VoIP) is the current standard and will likely continue to grow as the worldwide library of digital information continues to develop.
The terms IP PBX and VoIP are umbrella terms meaning Internet telephony, IP telephony, broadband telephony, or broadband phone service. They send voice and data communications over Internet Protocol networks, or IPs, instead of through manual and automatic switches.
For businesses looking to stay at the cutting edge, installing a VoIP system to handle internal and external communications is a forward-thinking option. Worldwide electronic information networks are incredibly large and keep getting bigger, allowing for massive, cheap, and fast data transfer in the future. Taking advantage of VoIP now is the best way to maintain superior communication in a competitive business world.
Now that you’re up on the meaning of PBX systems, are you ready to keep yourself and your business ahead of the curve? Contact TC Tech Systems today and ask about our multiple PBX options. We’re happy to streamline communication for you and all of your employees.