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What is PBX?
Wondering what a PBX is? How does it work? Private branch exchanges have been an integral part of business communication for decades. These boxes allow enterprise users to share common resources such as phone lines instead of having to install a separate line for each employee or desk. The term PBX might sound old-fashioned but organisations use them even today as the backbone for enterprise voice communication.
How PBX works?
The basic structure of a PBX consists of lines and stations. Lines are simply connections to the PSTN that are supplied by a service provider. Stations are endpoints such as desk phones, fax machines or credit card terminals. Without a PBX, the business might need to purchase and install 200 separate lines if it has 200 employees. Calls between users in the same office are also charged for minutes just like external calls.
By installing a PBX system(VOIP), the business is able to improve efficiency and save costs. The box enables employees to call colleagues simply by dialling a three or four digit extension number. These local calls are not charged and are completely free, ensuring that there are no impediments to productive collaboration. The PBX allows users to share external lines as well i.e. the company may only purchase 20 – 30 lines that can be shared among the 200 users.
The system works because all 200 employees are not likely to make phone calls at the same time. The number of lines puts a limit on the maximum number of simultaneous calls and how many to purchase will depend on the business needs, call volume and history. For instance a call centre will need more lines than a retail store.
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