IP PBX, or Internet Protocol Private Branch Exchange, is a telephony system that is used by many businesses worldwide in order to route telephone calls, especially long-distance calls, through the Internet while maintaining a wide variety of features that are available throughout an office building. IP PBX systems can exist as either hardware or software implementations, although the vast majority of any IP PBX system is software-based. Because of its lack of external lines and dependency on traditional telephone companies, an IP PBX system is much more cost-effective and feature-rich than traditional PSTN PBX systems.
How IP PBX Works
An IP PBX system is able to convert voice and data packets from an end-user’s landline telephone into IP packets that can be transferred over the Internet and vice-versa. IP PBX systems then use an externally-located converter, which is generally provided by the VoIP telephone company, to convert the IP data packets back into voice and data that can be sent over traditional telephone lines to the receiving user. While IP PBX systems are largely routed through the Internet, they can also be connected to existing in-office telephone systems, allowing businesses to use extensive features, such as automated attendants, multiple extensions and voicemails, and call parking.
Applications
IP PBX systems are used in a wide variety of office settings and can be used by corporate offices, small businesses, nonprofit organizations, government agencies, and any other institution that receives large numbers of calls. IP PBX systems allow these institutions to minimize costs associated with both local and long-distance calls, obtain more features, and provide redundancy to existing telephony infrastructure.
