Businesses comprised of several employees need a way to manage internal phone communications without having to reserve a separate line for each employee. One possible solution is a PBX, also known as a Private Branch Exchange system. Without this technology, a company would have to absorb the extra cost and maintenance associated with leasing an exclusive connection for each staff member with a telephone. Below, we’ll take a closer look at how this technology works and the advantages it offers to a small and growing business.

How Does It Work?

In order to understand how a PBX works, it’s necessary to review the job of the phone company. Normally, a connection is established between a building and the carrier’s central hub (this connection is sometimes referred to as the “trunk”). The hub’s job is to manage the routing and distribution of calls – both incoming and outgoing. The carrier’s network also provides additional services, such as voicemail, caller ID, 3-way conferencing, and similar features. Each of these services, including the routing of calls on each connection, carries a cost.

Consider a business that employs 100 people. If it were necessary to establish a line to the carrier for each person, the expense would be substantial. This is where a Private Branch Exchange system adds immense value.

By integrating an internal switching network, a business can replicate the routing feature of a telephone service provider for internal calls. If one employee were to call another within the company, he or she could do so without incurring the routing charge normally levied by the carrier. Each phone is programmed with an exclusive extension; internal calls are made by extension rather than dialing a full telephone number.

Companies using a PBX to manage internal phone communication do not need to maintain an individual line for each employee. Instead, they merely need to identify what percentage of their staff might possibly make an external connection at the same time. That percentage will dictate the number of lines required.

Advantages For A Growing Company

The most significant advantage of a PBX is a lower cost of phone communication. As noted, a Private Branch Exchange system significantly reduces the number of lines that a business must lease from its carrier. It can also block internal access to 900 numbers and prevent employees from making other costly outbound calls.

The lower expense increases a company’s competitiveness within its market. Often, the most significant obstacle that prevents a business from reaching a new plateau of success is high operational costs. A PBX system can be implemented to reduce those costs. Moreover, as a company grows, so too, does its staff and its volume of internal phone communication. A Private Branch Exchange will help contain associated expenses.

In today’s business world it is important to be aware of ways to improve your company’s best practices so that you can stay ahead of the competition and provide the best resources for your employees. Lowering expenses is always a concern, so smart planning and awareness are key.

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Category: Computers and Technology
Keywords: PBX System, internal phone communications, Private Branch Exchange System