What is an IP PBX phone system?

The initials PBX stands for Private Branch Exchange and is the system that connects telephone extensions to the public telephone network, providing private internal communication for a business. An IP PBX is a telephone exchange capable of connecting to the Internet Protocol and can also provide audio, video or instant messaging add-ons that use the TCP/IP protocol stack.

VOIP gateways can be combined with a traditional PBX and provide businesses with functionality to allow them to use their managed intranet to reduce long distance costs and take advantage of the benefits of a single voice and data network (converged network). An IP PBX can also provide CTI capabilities.

With a traditional PBX, range is usually limited to a certain maximum number of external telephone lines and a certain maximum number of internal telephone devices or extensions. PBX phone system users (phones or extensions) share outside lines for outside phone calls.

An IP PBX opens up possibilities, allowing almost unlimited growth in terms of extensions and trunks, and the introduction of more complex functions, which are more expensive and difficult to implement with a traditional PBX, such as:

Telephone Groups

Tails

Digital receptionist

Voice mail

References

An IP PBX can exist as a physical hardware or software device.