WIKI VoiP PBX PBX What is IP PBX and Why is it Important?What is IP PBX and Why is it Important?

What is IP PBX and Why is it Important?

What is IP PBX and Why is it Important?


With a traditional PBX system, or private branch exchange, everything is done over live phone lines. Stations are utilized to route and reroute phone calls in order to allow a caller to reach the party they want to talk to. While this is a perfectly acceptable method of doing business, as technology grows, so do the incentives for upgrading to newer business telephone systems.


What is an IP PBX?

An IP PBX, or internet protocol private branch exchange, is a more modern than that of traditional PBX systems. Instead of utilizing live phone lines, it instead uses internet protocol to code and decode data with modems. While this data is still sent over the phone lines, it is sent and received in a different form than normal, and is much more efficient and cheap to use in most cases.

How does IP PBX work?

Unlike the mechanisms and electronics that powered old fashioned PBX, modern IP based PBX is entirely digital. That means that everything is software based—the hardware is only there to run the program and transmit the data. This proves to be advantageous for a number of reasons, but mostly for the ability to more easily manage the data.

While a free PBX system generally has a decent level of control over what the software does, commercial products like Panasonic PBX and NEC PBX are the industry standard. The reason for this is because of the fact that the level of control and support you receive with these products completely dwarfs that of free private branch exchange systems.

IP PBX Features

The list of features that you get when you use an internet protocol PBX system is nearly endless, but there are some significant features worth mentioning. Among these you have a plethora of voicemail options, fax support, live monitoring, and tons of features designed to make your employees and customers have a more enjoyable experience.

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