PABX Communication systems play a major part in the operations of most offices around the world. Regardless of the size of the company, a working internal communications system that allows workers to seamlessly connect without relying on external factors is usually one of the first things installed in new corporate headquarters and small business offices alike.
Back in the days before the internet, business communications were handled pretty much only by installing traditional landline phone systems at the office premises, with tens of meters of cables connecting the stationary phones to ensure smooth and quick connectivity. These systems were vulnerable to many external factors, though, such as power outages on the provider’s end and the hiking up of prices by telephone service providers.
Most business communications capabilities are made possible by implementing private branch exchange (or PBX) systems. Traditionally, it required a room of operators to manage the company’s employees’ calls and transfer them via analog methods. These people also had to handle all of the communications coming in from the outside and put them through to the right people.
All of that changed with the arrival of PABX – the Private Automatic Branch Exchange method. It has drastically reduced communication costs for businesses and improved the systems’ interconnectivity and response times. After reading this article, you’ll know the main differences between PBX and PABX, and how you can implement these solutions in your own business.
What Is PABX (Private Automatic Branch Exchange)?
We’ve already established that PABX stands for Private Automatic Branch Exchange. But what does that terminology entail? What are some of its major features? As PBX technology improved and the operators moved away from manually transferring calls to being able to do so at the press of a button, these changes warranted the development of a new term describing phone systems in most offices.
PABX-enabled phones have entirely eradicated the need for operator rooms, as the same functions could have been carried out at the press of a button on the same phone from which the outgoing call was coming. PABX users can make free internal calls.
Initially, these solutions were prohibitively expensive. Traditional PBX systems remained in use while improving upon the original method reliant on switchboard operators. With time, electronic switching for call forwarding or call transfer became the standard in most offices, even those without a fully automated PBX.
How Exactly Does a PABX System Work?
Private Automatic Branch Exchange (PABX) was made possible by the arrival of the capability to electronically switch between calls without the need for manual operators. This advancement was the key to developing a telephone system that would completely do away with the need for hiring people to do the menial task of answering and transferring incoming calls.
Without getting too much into the technicalities, PABX systems, in their most basic version, make use of extension numbers, which are assigned to each phone in a given office. For example, if you’d like to call one of your co-workers who’s in his office next door, the only thing you’d have to do is type in the extension number on your PABX-enabled phone, and the call would directly go through to the receiver.
Private Automatic Branch Exchange (PABX) systems have fixed that by removing the middlemen (operators) while keeping the structure of PBX systems intact. Phone extension numbers remained, but the switchboard was replaced with buttons placed directly on the telephones themselves, allowing any employee to carry out internal phone calls without waiting in line for what sometimes felt like an eternity. Modern PABX systems make use of IP-based phones, and companies providing these services often base their entire functionality around internet connection, removing the need for installing phone lines altogether.
how-does-a-PBX-phone-system-work?
PABX: Most Important Features
In our increasingly interconnected and interdependent world, the need for fast, reliable connectivity should be prioritized above anything else. This is especially important in business environments, where minutes (or even seconds) of hesitation or lengthy session initiation can end up costing thousands of dollars.
An increasing number of companies have been utilizing voice-over IP (internet protocol) technology to achieve the best results possible. It may be difficult to decide on the right communication service for your business without understanding its main features.
Some of the main characteristics of a modern PABX system include:
Effortless call transferring
Constant connectivity independent from any phone service provider
Using VoIP for the best call quality possible
Adjustable to the needs of your business
Some advanced features of the modern PABX system：
Auto Attendant
Call Recording
Conference Call
Voicemail
Call waiting
PABX vs. PBX: What’s the Difference?
Nowadays, the terms Private Branch Exchange (PBX) and Private Automatic Branch Exchange (PABX) are used almost interchangeably. This is because PABX has proven to be superior to the old-school PBX systems, and with the decreasing costs of high-speed internet connections, it simply makes more sense from a financial standpoint. Yet in terms of how they originated, there is actually a difference between them.
PBX
This is the “legacy” system that replaced POTS in the majority of offices in the second half of the twentieth century. It is based primarily on landline telephony and uses switchboard operators to connect calls within and into the private branch.
Pros
Much more efficient than a plain old telephone system.
Removed the need for installing as many phone lines.
Cons
Human operators are less efficient.
Long waiting times.
Lack of any additional features.
Completely reliant on landline telephony.
PABX
As technology progressed, businesses began looking for more advanced communications systems that would catch up with all of the innovation going on, not to mention the mobile revolution we’re still witnessing today. The first PABX systems allowed users to connect by using buttons on their telephones and dialing extension numbers. As the internet started taking over as the primary communication tool, VoIP PABX systems became the most popular solution, offering advanced features and benefits that were simply not possible in the past.
Pros
Removes the need for installing complicated landlines.
VoIP enables nearly instant connections.
One PABX system for all branches of one company, even internationally.
Softphones that can be installed on mobile devices and computers.
Extra efficiency-improving features.
Cons
Requires a good, stable internet connection to work, which may be a problem in certain regions.
Reasons To Use a PBX
Companies that use PBX enjoy benefits ranging from advanced calling features to wider connectivity and security. Below are a few reasons to jump on a PBX system if you’re still considering how to enhance your communications.
Transfer calls with ease: With PBX, you can quickly transfer calls between departments and individuals. You won’t need to first drop a call to transfer it to someone else who, say, can provide the information the caller needs.
Access more call features: Beyond making voice calls, you can hold online team meetings and live-stream video conferences, so your employees don’t have to be on the same site.
Enjoy free customization: PBX allows you to customize your telephone system. You can record greeting messages, include your choice of music, and even create custom apps alongside calls, instant messages, and conferencing across various devices.
Communicate on the go: PBX offers connection via various devices, including your desk phone, desktop computer, laptop, and mobile device. You can make traditional voice and video calls from anywhere.
Connect multiple business locations: You can use the same PBX system to connect employees across various locations. One PBX system will handle all your calls through forwarding and routing.
Gain advanced security: PBX systems now offer built-in encryption to protect all your conversations, even without a VPN. This extra security feature enhances the privacy of your company and clients.
3 Types of PBX Phone Systems
Private branch exchange is available to serve different business communication needs. For instance, the system operates on-site and in the cloud to provide both traditional and improved telephony experience. Below are the types you should consider for your business.
Analog or Traditional PBX
An analog PBX system is installed at your business location. The intra-office system connects plain old telephone service (POTS) lines to a public switched telephone network (PTSN).
The analog PBX phone system provides basic telephony service, allowing you to make and receive phone calls and faxes between company employees. It requires installing copper phone lines and other hardware. You’ll also need to add new telephone wires and jacks to add more employees to the network. And to make external calls, you’ll have to pay for additional phone lines.
On-premises analog PBX connects your employees, but it doesn’t offer modern-day features such as multimedia services, voice mail conversion to email, and remote working capabilities.
Internet Protocol PBX (IP PBX)
Also called VoIP PBX, this PBX system is an improved version of analog PBX. It provides more features and allows connectivity between multiple locations. VoIP or IP PBX uses the internet protocol (IP) to link office-networked phones and converts voice to data, which reaches the receiver as voice. IP PBX provides access to unified communications features such as messaging, video conferencing, and “bring your own device” (BYOD) mobility, which analog PBX systems lack.
Internet protocol PBX uses session initiation protocol (SIP) trunking to run a phone service on your office network, thereby allowing teams to communicate with each other and outside clients over the Internet. All you’ll need to do to get your IP PBX running is set up your SIP trunk with a provider and create a small physical space for data pockets, where your call data is stored. Learn more about SIP vs VoIP.
Cloud PBX
Also known as virtual or hosted PBX, cloud PBX uses internet protocol technology to enable you to make and receive calls without on-site equipment. The setup is quick—buy the service and plug in your phones. The service provider routes incoming and outgoing calls through data packets or a public switched telephone network.
Cloud PBX allows you to manage your devices from your web browser. You can control all call forwarding, call routing, call recording, music holding, and auto attendants from anywhere.
What To Look For in a PBX System
While all PBX solutions will enhance your communications and grow your business, choosing one that suits your business’s exact communication needs is important. Here are a few things to consider when choosing a PBX system for your company.
Your Company’s Needs
Cloud PBX systems offer more features than on-premises types, so if you need advanced functionality such as call reports, video conferencing, mobile extensions, and CRM integration, you should go for a cloud PBX system. But if all you need are standard call features such as call transfers, ring groups, and auto attendant, you’ll do fine with an on-premises PBX solution.
Your Business Environment
If you work from a single office, an on-premises PBX system will be better for you. However, if your employees work from home or are usually on the field, you should choose a cloud PBX system. Also, cloud PBX systems are more suitable for small to medium-sized businesses, while on-premises PBX systems suit larger enterprises.
Your Company’s Strength
To know which PBX phone system your business needs, examine your knowledge of telephony concepts, how skilled your IT staff are, which systems you’ll need to integrate, and your access to a strong internet connection. For instance, you’ll need a reliable high-speed internet connection to run a cloud PBX system, whereas you’ll only need phone lines to run a traditional PBX system.
Your Budget
PBX systems come with upfront and ongoing costs, ranging from installation to maintenance. For example, cloud PBX systems majorly require monthly subscription fees, while on-premises PBX will cost you hardware, installation, and licensing fees and often requires replacement after some years. Also, VoIP PBX allows you to add and remove lines for free, while analog configuration requires a physical installation and extra payment on additional lines. So find out how much a PBX type will cost you and if your company can afford it.
Bottom Line
Private branch exchange systems will help improve your business communications, which will in turn grow your business. However, you’ll need to choose one that suits your business, considering your unique needs and the functionalities of the PBX types available.
Conclusion
Private automatic branch exchange (PABX) systems, just like any other product or service, come in all sorts of shapes and sizes. Not all of them will fit your business like a glove. Hubtech services are incredibly versatile, making our PABX offer one of the broadest ones in the industry.
You can choose between an on-premises VoIP PABX system, granting you the ultimate and complete control over the unified communications at your office. On the other hand, if you prefer a more hassle-free approach, our cloud-hosted PBX system is the perfect solution for businesses of all sizes who want a reliable UC service without having to worry about equipment maintenance.
Regardless of the service you end up choosing, selecting Hubtech as your unified communications provider will ensure a long-lasting, reliable way to improve and maintain seamless connectivity in your office.
At Hubtech Limited we offer a variety of PABX systems. Contact us for more information on the right PABX system for your business.
