PBX

Private Branch Exchange

A private telephone network used within a company or organization. The users of the PBX share a number of outside lines for making external phone calls – these are the lines that connect to the public switched telephone network (PSTN) or the Internet telephony service provider.

A PBX also allows for free calls between users within the system and offers additional features like voicemail, call forwarding, call waiting, call recording, and interactive voice menus (IVRs). These systems can be hardware-based with physical wiring or can operate as IP-based networks, known as IP PBX, using internet protocol to transmit calls.

Essentially, a PBX acts as the central switching system for phone calls within a business, directing incoming calls to the appropriate extension and allowing internal network users to communicate directly, without needing separate external lines for each user. This system helps organizations manage their communications efficiently and reduce costs associated with telephone services.

• Abbreviation: PBX