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With the rapid growth of smartphones, PBX phone systems have become less popular. However, these platforms are still around and offer a lot to businesses looking for a more secure communications platform. Here is an overview of how they work in today’s modern world.
Analog phone systems are outdated and not as practical as digital phone systems. However, analog pbx phone system is still a popular option for many businesses.
The technology and software that enable organizations to use numerous extensions are referred to as private branch exchange (PBX) phone systems. Automatic call routing, interactive voice response (IVR) menus, call scheduling, and other critical capabilities are also available with PBX systems, allowing you to take your corporate communications to the next level.
It’s worth mentioning that these systems may cost anywhere from nothing to thousands of dollars, so you’ll want to know all there is to know before deciding on the best PBX system. We’ll guide you through everything you need to know about PBX systems, from what they are and how they function to the most reputable vendors in the business.
Why Do Companies Require PBX Phone Systems?
PBX systems enable organizations to provide individual extensions to their workers. This also implies that a corporation will need fewer phone lines from its phone carrier, saving money. As a consequence, it is one of the most widely used types of corporate phone service today.
The way the software and hardware interact is determined by the kind of PBX system and how it is set up. For example, older PBX systems were entirely on-premise, meaning that all of the essential components were placed on-site at your workplace. Advances in voice-over-internet-protocol (VoIP) technology, on the other hand, enable contemporary organizations to employ a hosted PBX, which is a cloud-based system that minimizes equipment costs.
What Are PBX Phone Systems and How Do They Work?
PBX systems transfer your company’s calls from your PBX to another company’s PBX system through landlines (or the internet with VoIP). After then, the call is routed to a specified line or extension.
Calls were routed by real people (switchboard operators) who would physically wire a link to the proper extension before PBX systems and VoIP technologies. The whole procedure has now been upgraded and automated. The following is how it works:
A PBX system’s components
When you setup your phone system’s settings, you get to choose how calls are handled. You have control over how incoming calls are handled, routed, and eventually answered by the appropriate end-user.
VoIP services like RingCentral and Nextiva host today’s top PBX systems. These platforms host the PBX systems on their own servers, so no on-premise gear or software is required to get started. You just register, download the required applications, and begin using your corporate PBX system. Businesses of different sizes use hosted PBX systems, from tiny startups to contact center teams with huge monthly call volumes.
To utilize internet-based PBX services, you’ll need a fast, stable network connection. To verify whether your network bandwidth can accommodate a virtual phone service, do our VoIP speed test.
PBX Systems are available in a variety of configurations.
Businesses use four different PBX Systems are available in a variety of configurations.. Traditional landline systems use hardware-heavy landline PBX boxes, while internet-based systems employ IP, hosted, or PBX (Private Branch Exchange) systems.
PBX (Public Switched Telephone System)
PBX (Public Switched Telephone System) systems are old, physical hardware boxes that are installed, kept, and maintained in your office. You’ll connect your business phone lines to the box, and the box will route calls to each desk in your office via a voice menu and designated extension.
Setup costs can be as high as $1,000, but the price can go up further depending on your provider. Most small businesses and large enterprises choose an internet-based phone system to take advantage of the advanced features and cost savings. However, companies that already invested in expensive landline technology and those that lack high-speed internet connections may find a PBX (Public Switched Telephone System) system to be the best communication option.
IP PBX
IP PBX systems (also known as VoIP PBX) need a physical box, but instead of analog signals, they send and receive calls via the internet. Instead of utilizing conventional landlines, you’ll use Ethernet cables to connect your IP PBX box to the internet.
While internet-based calls will save you money in the long run, the pricey hardware box for your business will still be required. IP boxes are an excellent method to use VoIP technology without having to replace your complete phone infrastructure if your company already uses desk phones. Advanced call capabilities such as callout routing, voicemail, and automated attendants are all available with an IP PBX system.
Hosted PBX
Your company communications are directly connected to the cloud with a hosted PBX solution. This cloud-based phone system provides all of the advantages of VoIP technology without the need for elaborate physical installations or costly phone connections. To make and receive business calls, all you and your workers need is a desktop or mobile device.
Because they’re simple to use and expand, hosted PBX solutions are usually the ideal choice for small and developing enterprises. Additional communication channels, such as video, fax, team chat, and corporate SMS, are provided by the best hosted PBX system providers (such as RingCentral and Nextiva), to provide your organization a unified communications program. However, if you have several workers using the phone system at the same time, you’ll need a fast, dependable internet connection.
PBX (Private Branch Exchange)
PBX (Private Branch Exchange) systems share a lot in common with hosted PBX systems, but they trade features for simplicity and affordability. You won’t be able to take advantage of a sophisticated interactive voice response (IVR) menu, but you’ll have access to call forwarding and basic call routing.
This paired-down platform makes PBX (Private Branch Exchange) systems more affordable than hosted PBX systems, but you’ll still need an existing business phone system to make it work—which will eat into your cost savings.
Costs of a PBX Phone System
PBX systems could be as cheap as $20 per month or as expensive as thousands of dollars annually for setup, service, and maintenance. Plus, PBX (Public Switched Telephone System) systems will require you to purchase analog-compatible desk phones, which can cost a fair amount per employee.
The following are some of the most common PBX-related expenses:
- PBX box: Expect to pay around $1,000 for a PBX (Public Switched Telephone System) system. This price includes the cost of the box and the installation fees. If it doesn’t exist already, you’ll have to pay for landline wiring to be installed in your office.
- Phones may cost up to $500 per unit for desk phones and VoIP-enabled devices. Touchscreens, Bluetooth, and video chat capability will cost you extra.
- Monthly service costs: For all of the most popular options, you’ll have to pay recurring monthly subscription fees. RingCentral’s hosted PBX system begins at $19.99 per user, each month, although you may find providers for less or more.
- Maintenance: PBX (Public Switched Telephone System) systems will require on-premise maintenance and software and hardware updates from an expert. Hosted and PBX (Private Branch Exchange) systems also go through maintenance and updates, but this happens seamlessly in the cloud.
Advantages of a PBX Phone System
- Automated attendants, call routing, voicemail, and transcriptions are among the advanced services available.
- Internal communications: Save money by routing calls inside your PBX system instead of outside.
- Internet integration: Choose an internet-based PBX system to take advantage of VoIP technologies.
- Affordability: Hosted and PBX (Private Branch Exchange) systems will save you money with cheaper setup and monthly service fees, as well as lower costs per call.
- Integrations: Use sophisticated developer APIs to connect your hosted PBX system to your preferred customer relationship management (CRM) systems or to integrate it straight into your applications.
Providers of the Best PBX Systems
There are many of PBX system providers to choose from, but not all systems are made equal. Because each solution caters to a different kind of company, you’ll need to shop around to discover an inexpensive service that meets your needs.
Three of the most powerful PBX system suppliers for small enterprises are listed below. However, you can learn more about the best hosted PBX system providers by visiting our guide to the best hosted PBX system providers in this area.
RingCentral is number one.
RingCentral offers a hosted VoIP business solution that includes calls, video, SMS, and group chat. From start to end, this internet-based communications solution can expand with your company.
2. Nextiva
Nextiva offers a hosted PBX solution that is ideal for expanding companies. Your firm will have the whole communications suite it needs with economical entry-level plans and comprehensive call management tools.
3. Vonage
Vonage provides small businesses with a PBX (Private Branch Exchange) system. Its features are paired down compared to RingCentral and Nextiva, but it makes up for its lacking features with easy-to-use simplicity and more affordable pricing plans.
Most Commonly Asked Questions (FAQs)
What is the difference between a landline & a VoIP phone system?
Landlines carry calls as analog signals via the traditional copper network, while VoIP systems transfer calls as data over the internet. Check out our comparison of landline and VoIP systems for additional information.
Is there any reason I should ever choose a PBX (Public Switched Telephone System) system in 2021?
In most cases, no. However, if you have an expensive legacy system that you don’t have the budget to upgrade or your business operates in an area with a poor internet connection, then a PBX (Public Switched Telephone System) system might be right for your business.
Is an internet connection required for a PBX?
You don’t need a fast internet connection if you’re using a PBX (Public Switched Telephone System) system. However, internet-based PBX systems (like IP, hosted, and virtual) require a quick, stable network connection.
Can landline & VoIP phones call each other?
Yes, they are capable. Both technologies have progressed to the point where phoning each other is absolutely seamless—you won’t be able to tell the difference.
Conclusion
The way organizations make and receive calls has forever changed because to PBX systems. You can take your company with you everywhere you go using VoIP technology—on a hardphone, desktop, mobile, or even tablet device.
When it comes to selecting the ideal PBX system for your company, there is no such thing as a one-size-fits-all solution. A hosted PBX, such as RingCentral, will, on the other hand, provide your company with the freedom it need to tailor the service to your requirements. There’s no better platform for upgrading your company phone system than one with mobile and desktop applications, third-party connectors, and more communication channels.
Go to RingCentral.com.
