The traditional telephone system is known as the Plain Old Telephone System or POTS for short. It’s based on the twisted pair of wires from the local phone company to the building. POTS is basic, reliable, and hasn’t changed much in 140 years.
Telephone companies connect calls with others using the Publicly Switched Telephone Network (PTSN). The PSTN makes it possible for a Verizon customer to call an AT&T customer as well as patching calls over locally.
Plain Old Telephone System – Diagram
Providing a business with phone service isn’t inexpensive. A typical business phone bill could easily be in the thousands every month just for a hundred lines.
There has to be a better way.
A PBX allows a business to operate an internal phone system and use fewer phone lines from the phone company. Top PBX systems offer the option to manage voicemail, auto attendants, and recorded messages. This also includes phone extensions for everyone in the company.
The PBX has redesigned the way businesses handle calls, offering a significant upgrade to past limitations. Before, PBXs were proprietary and very difficult to maintain.
Today, PBX systems have evolved quite a bit. No longer beholden to the local telephone company, calls are made using Voice over Internet Protocol (VoIP) technology. Instead of analog lines, SIP trunking establishes connectivity for a fraction of the cost.
Want to learn more about VoIP? Our beginner’s guide to VoIP will help you understand the ins and outs of VoIP.
PBX systems empower IT leaders to maintain their existing devices with an all-digital backbone. By assigning different business phone numbers to different extensions. Alternatively, a cloud PBX blends the best of both worlds with a fully managed phone system deployment.
Now that we know the purpose of a Private Branch Exchange, let’s learn about the business benefits of a PBX.