Business Phone Systems: What Does PBX(Private Branch Exchange) Stand for in IT and Telecom?

October 19, 2022

Business Phone Systems

Acronyms and technical terms can be confusing for people who are not in the know. One such term is “PBX,” which stands for Private Branch Exchange. A PBX system through Rivell is a private telephone network used by organizations and businesses of all sizes.

So, what is a PBX system, and how can it benefit your business? In this blog post, we’ll explore the answers to these questions and more.

What Does PBX Mean in IT and Telecom?

What is a PBX(Private Branch Exchange) Phone System?

A private branch exchange (PBX) is an internal telephone system that moves calls among customers on local lines while enabling all users to share a set number of outside phone lines. A PBX can be as small as a handful of users or as large as an enterprise with thousands of employees.

In the past, PBX systems were proprietary and required special hardware and software. Today, however, PBX systems are available as both on-premise and cloud-based solutions. On-premise PBX operations are put in and managed on your premises, as cloud-based solutions are hosted by a third-party provider and accessed via the internet.

What are the Benefits of a PBX System?

There are several benefits of using a PBX system, including:

Increased efficiency:

With a PBX system in place, employees no longer have to waste time hunting for co-workers who might be out of the office or on another line. Someone can transfer calls easily and quickly, ensuring that employees can always reach the person they need to talk to.

Lower costs:

A PBX system can save your business money by eliminating the need for multiple phone lines. By sharing a few external phone lines among all users, you can reduce your monthly phone bill.


A good PBX system should be able to grow with your business. As your company expands, you should be able to add new users and features to your system without having to replace it.

Improved call quality: 

PBX systems route calls through a central server, which can help to improve call quality by eliminating background noise and static.

What is the Best Phone System for a Small Business?

When choosing a business phone system for a small business, there are some things to consider. The first is the size of the business and the number of employees. The second is the type of business and the specific needs of the business. The third is the budget. The best phone system for a small business is the one that fits the specific needs of the business and the budget. There are many different phone systems on the market, so it is important to do some research to find the one that is right for your business.

What are the 3 types of Telephone Services?

Traditional Phone Service:

This is the most common type of phone service and includes a landline that is connected to a phone company. The advantage of a traditional phone service is that it is more reliable than other types of phone service. However, it can be more expensive than other alternatives.

VoIP (Voice over Internet Protocol):

This phone service makes and receives calls over your existing internet connection. The advantage of VoIP is that it is usually less expensive than traditional phone services. However, the downside is that it can be less reliable than traditional phone service, especially if you have a slow or unreliable internet connection.

Cellular Phone Service:

This type of phone service uses a cell tower to connect to the internet and make and receive calls. The advantage of cellular phone service is that it can be used anywhere there is cell coverage. However, the downside is that it can be more expensive than other options, especially if you need unlimited data usage.

What is the Average Phone Bill for a Small Business?

The average phone bill for a small business is about $100 per month. This can vary depending on the type of business, the size of the business, and the location of the business. For example, a small business in a rural area may have a lower phone bill than a small business in a major city.

The type of business can also affect the phone bill. A business that relies heavily on phone calls, such as a call center, will have a higher phone bill than a business that does not rely as heavily on phone calls.

There are a few things that businesses can do to lower their phone bills. One is to negotiate with their service provider for a lower rate. Another is to switch to a VoIP service, which can be significantly cheaper than traditional phone service.

How Do I Set up a Phone for my Business?

There are a few things you need to do to set up a business phone. First, you need to get a business phone line. You can do this by contacting your local phone company. Next, you need to get a business phone number. This can be done by contacting your local phone company or by using an online phone number service.

Finally, you need to set up your business phone. This can be done by contacting your local phone company or by using an online phone service.

You will need to provide them with your business name, address, and contact information. They will then set up your phone line and give you a business phone number. You can start using your business phone immediately to start taking calls from customers.

If you have any questions or problems with your new business phone, the customer service representative will be happy to help you. They can also help you set up voicemail and other features on your phone.


PBX stands for Private Branch Exchange and is a phone system used by small businesses. It is important to choose the right type of phone system for your business to save money and improve communication. Contact us today to get started!


Written By

Picture of Ryan Van Laeys

Ryan Van Laeys

Ryan is the Chief Technology Officer at Rivell, a leading provider of managed IT services, cloud solutions, VOIP, and more. With over 30 years of experience in the IT field, Ryan is an author covering key IT services including IT challenges & tips, cybersecurity, and cloud solutions for all businesses.

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