pbx phone system

Does cutting your communication costs by 50% to 75% sound good to you? That’s how much a VoIP phone service can increase your operational efficiency.

Efficient and timely communication is the lifeblood of your operations. If clients and colleagues find it hard to reach you, you will ultimately lose unearned revenue and lower your productivity.

To help you handle incoming communication seamlessly, here is a look at the PBX phone system and which businesses can benefit from it.

What’s a PBX Phone System?

A Private Branch Exchange (PBX) is an organization’s phone system specialized for switching calls among users on local lines. The system also enables these users to share a particular number of external telephone lines.

The primary purpose of the PBX system is to cut costs. If all the liens a firm needs to use originated from the phone service provider’s local exchange, the cost would be prohibitive.

As a workaround, the service provider runs a trunk line connected to a switching facility on your premises. From there, lines serving various extensions can be set up.

While a PBX system uses Voice over Internet Protocol (VoIP) just like Session Initiation Protocol (SIP), it’s easy to confuse the two. The difference comes in through the logistics, how you operate and use them.

Types of PBX Telephone Systems

There exist four major types of PBX systems, and what you ultimately choose depends on your organization’s communication priorities.

1. Traditional PBX

Traditional PBX uses regular telephone lines to originate and collect phone calls. Such a system is a legacy one meaning that the costs are higher than those PBX systems that are VoIP-driven.

If you are hunting for a new PBX system, this would not be the best alternative. Only companies with legacy PBX infrastructure can benefit from keeping it running.


With this system, your PBX will rely on VoIP technology instead of traditional telephone lines. There is a significant upfront cost tied to setting up an IP PBX system, but the lower running costs make up for it.

An IP PBX system is not limited by the number of phone lines you can get but rather only constricted to your bandwidth capabilities.

That makes for a more manageable maintenance regimen as compared to a traditional PBX set up.

If you have little space on your premises, then an IP PBX can appeal to you. The system requires less space since all the call data is contained in data packets.

Another critical reason for you to consider an IP PBX is that it offers greater control in the configuration as you do it in-house.

3. Hosted PBX

A hosted PBX system relies on VoIP technology, just like an IP PBX one. The difference is that the former is operated off-site by a third-party provider.

All you do is pay a monthly subscription fee to receive a PBX service’s full benefits and none of the maintenance headaches.

Hosted PBX systems tend to be cheaper due to no related upfront costs. As a result, many small businesses rely on this service.

Even established businesses that can afford an IP PBX system opt for hosted PBX to pass on the maintenance obligations.

Keep in mind though that a rule of thumb here is that once your system is serving more than 20 people, IP PBX will be cheaper in the long run.

4. Virtual PBX

A virtual PBX is similar to the hosted PBX system, with the difference being that it’s cloud-based.

In most instances, a virtual PBX system will handle internal calls through the internet. Therefore, if you are an organization that doesn’t make many external calls, a virtual PBX can serve you well.

Companies that don’t use many phone features outside of the essential services like voicemail and hold music will also find this system compelling.

What Businesses Can Find a PBX System Useful?

Since communication is a critical component of running your organization, you need the right PBX system to communicate seamlessly. Some firms that might find the system useful include:

1. E-commerce Operators

As an eCommerce operation, speed is of the essence for you, and that includes your phone system as well.

A PBX system can enable you not to keep your customers waiting by directing them to the right team member using an autoresponder.

If you run a home eCommerce firm and want to use a different number (or prefer a non-geographical number), a PBX system can solve that for you. Your provider can arrange for such a number and connect it to your telephone system.

Additionally, a VoIP-based PBX system can help you keep your operational costs low, which contributes to lifting your margin per sale.

2. Family Businesses

A majority of family businesses are small. That means you need a communication system that will grow with you.

Through VoIP technology, a PBX system gives you the flexibility to add phones and numbers as you bring on more workers. You, therefore, end up saving on costs tied to adding new landlines to your office.

Having a VoIP number means your business continuity is stable as you keep the number even if you change locations.

That flexibility in retaining a phone number customers are used to ensure your employees can operate remotely without disrupting operations.

3. Tourism and Hospitality

For seasonal businesses such as tourism and hospitality, a PBX system can enable auto-responding to customers during peak season.

By deploying a PBX that supports an answering service, you don’t waste time responding to frequent inquiries, which can lead to losing more business.

When high tide hits and clients are pouring in, a PBX system can help you divert calls to your mobile phone to stay in touch even when you’re away from your station.

In addition, a PBX system can scale up and down with your organization, depending on the season you’re in.

Keep Your Communication Going

The more efficiently you communicate, the better your operational efficiency, and the more revenue you stand to pull. Thus, it’s essential to deploy a PBX phone system and ensure that no matter where you are, clients and colleagues can reach you when the need arises.

SIP.US is a SIP trunking service provider committed to helping you cut your communication costs while receiving exceptional support. Talk to us today for IP-PBX system services that simplify your operations.

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