What is PABX and How Does It Work?

Private Automatic Branch Exchange (PABX) has powered corporate communication systems for many years. PABX consists of several components, such as stations and lines in a closed network. While businesses with a PABX can use a platform of their choice, their service provider must use a Public Switched Telephone Network.

Since voice communication is such a key part of corporate operations, some businesses have decided that every employee must have their own phone. If the business is using the traditional phone-line architecture, its phone bill will be quite high. A PABX system can lower the phone bill because many employees will be using the same phone line. Moreover, the employees will be able to make internal calls via short extension numbers. Ultimately, the introduction of a PABX system reduces the number of physical phones within the business premises.

Features of PABX

A PABX system has a number of features, such as conference calls and toggle, that make it a convenient communication tool. For instance, you can use the toggle tool to move from one call to another without changing the settings. This means that you can switch from talking to a colleague to answering some questions from a client. At the same time, you will have the opportunity to include many people in the same call. Other popular PABX features include call forwarding, call transfer, call waiting, and callback.

The Technology Behind PABX

The technology that powers PABX has dramatically changed over the last few years. When PABX phone systems were first introduced, they usually used analogue connections to join private networks with public networks. As digitisation and ISDN became a common feature, businesses started to prioritise multiplex connections. This meant that one phone line could have at least 30 connections at the same time.

Later, the system advanced to a point where most telephone services were using VoIP systems. The introduction of cloud-based tools and extensions meant that virtual calls were dominating business communications.

The latest telephone services use IP protocols when connecting public telephone networks with private phones. The aim is to ensure that calls can be exchanged via cloud-based tools. As a result, a business with cloud PABX systems doesn’t need to purchase any hardware to stage an automatic branch exchange.

How Does PABX Work?

The PABX system includes several elements, such as a computer connecting lines, a switchboard console, and system hardware. The current hosted PABX system will use the voice over IP method to transmit and receive digital signal packets. This process starts with the conversion of an analogue signal into a digital one. As soon as the conversion is complete, the PABX system can choose any transmission route, as long as that method is compatible with the digital format of the signal. The system will also provide additional benefits such as a redial, speed dial, call forwarding, caller ID, auto-attendant, and voicemail in the process of transmitting the signal.

The operation of PABX is quite similar to how a public telephone exchange works. The average PABX system consists of hardware and software sections. Once the company has installed the PABX system, it will be able to add local extension numbers to its internal network. These extension numbers will be assigned to specific devices or phones within the corporate premises.

The main advantage of a PABX system is that internal corporate calls can happen without the help of an external network. Moreover, employees can talk to one another by just touching one button.

It’s also possible to create an incoming call with a specific pre-recorded message. This message can describe the type of department that the user is calling and the services offered by the department. If an employee has to make an external call, the PABX phone system will use a public telephone exchange system.

Key Takeaway

Businesses with PABX systems spend less on telephone costs while increasing the general efficiency of the business. At Nexgen, we provide hosted PABX telephone systems. Our systems are tested, reliable, and affordable. You can contact us for more information.