If you hate acronyms, then you are in the right place, we do too! In short, PBX stands for Private Branch Exchange, in everyday terms, a phone system. 


This blog is for business owners or managers interested in getting more from their business telephone system and who want to provide employees with a wide selection of calling, collaboration, and mobile features.

Private Branch Exchange (PBX), or phone systems as we prefer to call them, are business grade telephone solutions. They allow you to have several extension places around your business that then connect to your phone lines.

There are three types of PBX systems: Analogue, Digital and Cloud (also known as Hosted).

Cloud Telephone Systems have become the most popular type in recent years. They offer feature rich solutions with virtually unlimited flexibility.

Analog and Digital PBX Phone systems have been in decline for some time. Reasons for this include higher capital expenditure to set up, ongoing maintenance, and the availability of newer technology like VoIP (Voice over Internet Protocol).


How does a PBX work?

A PBX is a business grade telephone system. These systems provide the ability for everyday business call handling requirements. Requirements such as having phones on each desk, incoming calls ringing on multiple phones at the same time, placing a caller on hold and transferring a call to a colleague.

A PBX Phone System is also capable of providing automated attendants that answer and route calls to the correct people or departments.

Historically, PBX have used various communication channels, (ISDN) Integrated Services Digital Network, Analogue Line and VoIP channels called SIP Trunks. However, from 2026 PBX Phone Systems in the UK will only use VoIP communication channels.

A business telephone system is different from a residential or business mobile phone service because of its ability to offer such systems as conference calling, call recording, time of day routing, voicemail customers waiting in queues and on-hold music.


Compare the types of PBX here:  On-Premise and Cloud Telephone Systems.


Features you can expect from a PBX Phone System

Call transfer: This option lets employees transfer a call to their colleagues.

Presence: Allows colleagues to see if their co-workers are available or on a call.

Voicemail-to-email: Have your voice messages, sent to your email.

Auto Attendant: Business Telephone Systems can route your call without a physical reception by allowing callers to choose the right department from a list of options. For example, “Press 1 for customer support,” or “Press 2 for sales.”

Hunt Groups: Allows businesses to put employees with similar roles into one group. This is helpful when customers are trying to reach someone within a certain department.

On Hold Marketing: Silence is not golden! PBX Phone systems provide businesses with the option to play comfort messages to callers on hold or queuing, as well as the ability to play seasonal or marketing on-hold audio.

Call Analysis: Break down your company’s call data. View extension-level call reporting for inbound and outbound usage.

Call Forwarding: Send incoming calls to another internal or external number when you can’t answer.

Call Recording: Businesses can have the option to record all calls or ad-hoc call recordings for playback later.

Call Queues: Queue a call until someone is available to speak with them, ensuring staff departments aren’t overrun with calls during busy periods.


We hope you have liked this blog. If you would like to discuss this topic further and want to find out Which PBX Phone System would suit you best, either complete our short solution finder, call us on 0345 121 0206 or email hello@rawcom.co.uk