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Private Branch Exchange (PBX)

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

A 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. Acting as the phone company’s central office within an organization, a PBX works as the exchange point and point for routing calls.

Techopedia explains Private Branch Exchange (PBX)

The word private refers to its use in the private sector, as opposed to a public telecommunications company. 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 phone line to every phone line in an organization.

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