Private Branch Exchange (PBX)

Definition - What does Private Branch Exchange (PBX) mean?

Private branch exchange (PBX) is a private telephone network used within an enterprise. It is a business-oriented phone system designed to supply efficient voice communications between the Users of an organization.

The word private refers to its use in the private sector. Branch indicates a remote subsystem and exchange points to its switching functionality. Most medium-sized and larger companies used a PBX because it is less expensive than connecting an external telephone line to every telephone line in the organization.

Techopedia explains Private Branch Exchange (PBX)

Acting as the phone company’s central office within an organization, PBX works as the exchange point and the point for routing calls. The difference between PBX and PABX is that in PBX an operator is needed to perform each task. Thus, required human intervention is the difference.

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