Private Branch Exchanges (PBXs) help organisations to manage incoming and outgoing calls, thereby facilitating seamless inbound and outbound communication. Enterprise-level PBXs permits users to share multiple "phone lines". This helps to avoid the cost of a separate telephone circuit for every user.

All the standard Private Branch Exchanges consists of the subsequent parts:

  1. Multiple phone trunk lines that terminate at the PBX.
  2. A PC to manage call-switching among the PBX.
  3. The multiple line network inside.
  4. An optional switchboard to operate manually.

Types of PBX

There are two forms of Private Branch Exchange. Standard PBX and IP (Hosted) PBX.


Present-day PBXs consists of a hardware and software system. It connects to different communication devices like phone adapter, hubs, switches, routers and telephone sets. Standard PBXs have a limitation on the total number of trunk lines and internal device(phone) extensions.

IP PBXs permit call switching between VoIP users. Whereas the standard PBX work on phone line and switches, IP PBX uses the web to channel calls. This method helps to attach phone extensions to the PSTN and provides a secure internal communication system for the business.

Benefits of IP PBX

IP PBX systems can help with scalability, have increased configuration options and higher management tools. IP PBX systems are mainly software-based systems. Because of this, they are easier to upgrade and maintain compared to the older hardware version.

Previously, only more substantial corporations were able to use PBX systems, IP PBXs have helped smaller businesses gain to the advantages of using a PBX to manage their calls where previously this capability would have been locked to the larger companies.

Hosted PBX

Hosted private Branch Exchange is a PBX system that a third-party service supplier builds, delivers and manages. It's an IP based telecommunications solution that's provisioned and accessed entirely through the web.

Other terms used for Hosted PBX include cloud PBX or hosted VoIP. 

PBX systems are just like standard private Branch Exchanges without any need for on-premises hardware.

Because Hosted PBX systems are hosted by a third-party supplier that builds and organises the PBX system on their servers, this reduces the hassle for additional maintenance costs and effort.

Hosted PBX connects to the client or clients' phone system through the IP-based network or the internet. On the client's side, one needs to connect an IP phone to the web to make a call.

Benefits of Hosted PBX

Hosted PBX systems are especially helpful for small businesses. It helps to bring down the production cost while providing many of the valuable capabilities of an expensive PBX system. 

Service suppliers generally provide hosted PBX or hosted VoIP services for a monthly or quarterly fee. The price for this service is almost always far less than building the whole system within a standard PBX. These services work "in the cloud" and therefore a fast and reliable internet connection is one of the fundamental requirements to run a hosted PBX system. 

Some of the common advantages are as follows:

Low price & Less Maintenance:

As a 3rd party manages hosted PBX, it reduces time and cost for maintenance. Also, as there's no need for any significant infrastructure, a fast and stable internet connection is enough.

Scalability & Reliability:

With hosted PBX systems, even if communication requirements change, businesses will be able to add phone lines, extensions and mobile devices without limitations.

The internet-based hosted PBX or hosted VoIP system is also reliable because the system is hosted in the cloud.
Provided businesses have reliable internet connections; there should be no loss of service. Also, due to the flexibility in the types of codecs supported, connected calls tend to enjoy a very high quality of the call. 

Many PBX capabilities & options:

Some of the options that clients have available on hosted PBX systems include call recording, call Transfer, call diversion, Blacklist, Fax to email, Queue call management, Voicemail to email, SRTP (secure voice traffic), caller ID routing and more. 


Looking for a reliable VoIP provider? Sign up at VoIPLine Telecom and get 14-Day free trial to try the best features of our Hosted PBX phone telephone solution.