PBX Advancing to Hosted PBX

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A Private Branch Exchange is an exchange in telephone communication that only serves a particular company. This is a development in telephone communication that helps big companies needing centralized communication systems avoid the traffic in the Public Switch Telephone Network (PSTN). This also helped traffic engineers manage the negative effects of the communication traffic on the quality of calls.

Technically, PBX does not intend to obstruct or inhibit communication between the internal telephones of a company and the PSTN, in fact, one of its features is to connect them through specific trunk lines. Trunk lines are where telephone exchanges are integrated. However, the main objective of PBX is to incorporate all communication devices such as modems, fax machines and telephones and to centralize the system within the premises of the company.

When different companies and organizations began engaging in PBX, a lot of telephone communication providers have invested in this new business. The PBX system is different from the system used by telephone communication providers in providing services to public, but it also facilitates easy communication, albeit on a smaller scale.


However, telephone communication providers figured out a way for their clients to minimize expenses on the purchase of PBX system. Their idea was to provide PBX service to companies without requiring those companies to operate the system within their premises. The providers shall provide private exchange from their premises towards these companies using the same PBX devices but under a leasing agreement. This is called hosted PBX service.

Hosted PBX service is now popular because of its distinct benefits. Aside from providing minimization on expenses, it also ensures quality service since the hosted PBX is being operated within the system of the telephone company. In other words, the PBX system is flexible in terms of development in features depending on the agreement between them and the clients.

PBX not only guarantees the companies with effective and enhanced quality of communication, it also protects the integrity of the company by securing call privacy. But the evolution of hosted PBX service gave way for more features that telephone companies can easily implement and modify for their clients.

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