What Is It and How Does It Work? PBX phone system is a business telephone system. It is extensively used in enterprises to establish a telephone network. Enterprises use PBX phone systems as their private telephone network for inter-office and external global communication networks. Unlike the plain old telephone system i. e. POTS phone system, PBX has evolved in several ways. From copper cable transmission to internet protocol (IP) audio signal transmission, the PBX phone system has evolved with time and technology.

PBX stands for Public Branch Exchange. It is a private business telephone system adopted by the organizations to establish a secure communication channel. It can be used over copper cable connectivity and with the IP transmission media as well. PBX phone systems can be used with copper cable connection, analog, and digital combination transmission-lines, and voice over IP (VoIP). Unlike the public switched telephone network that is the POTS phone system, the PBX phone system allows multiple connections via a single telephone line. It saves the cost of acquiring an individual line for each communication device.

Initially, the PBX phone system was developed to offer a private network for analog signal transmission for the office spaces. Further, it evolved into an external connectable network using the POTS phone system. For the external user connection, PBX converts analog data to digital data or vice versa.

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