Pbx Systems

Written by Rachel Arieff
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PBX phone systems are private phone networks used within organizations. These phones are only intended for use within the organization. They are not meant to connect with outside lines, such as residential or other business phone systems. They may do so, however, by sharing an outside line--or two, or more.

Why use PBX systems? Their chief benefit is that they are much less expensive than a regular phone system. Connecting every individual phone to an outside line becomes very costly. If the chief purpose of an organization's phone system is for interdepartmental communication, then there really is no need for outside phone lines. Besides, as mentioned above, any number of shared outside lines is still an option.

Examining the Benefits of PBX Systems

For a small-sized company that may only have a few employees, regular telephone lines aren't that expensive. However, if you multiply that number of phone lines by 100 or 1,000, the cost of your phone system will go through the roof. This is where the PBX system saves medium- and large-sized companies big bucks. An additional benefit to the PBX system is convenience. Instead of having to dial a full-length telephone number to reach someone within the organization, you only need to dial a three- or four-digit number.

A newer development in PBX technology is the centrex system. Centrex, which stands for "central office exchange service," is a type of PBX hybrid in which the telephone company, rather than the business itself, actually administers the switching activities. In a centrex system, the phone company also maintains the PBX equipment, taking the responsibility for the phone system off the company's hands.

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