Cutting Costs with PBX Systems

Cutting Costs with PBX Systems

Cutting Costs with PBX Systems

A Private Branch eXchange, or PBX system, is a private telephone system designed to accommodate multiple telephone units without having to get individual phone lines for each of them. This kind of telephone system is commonly used in homes and offices alike, as it is very affordable and easier to use.

In a normal telephone system, a single phone is connected to the central office of the phone company that is providing the subscription. This office, called the trunk, is in charge of directing incoming and outgoing phone calls to and from the unit. Subscribers usually pay monthly fees for the phone, which is affected by the amount of usage.

However, businesses usually require multiple telephones, since there are many employees doing different functions that require telephone usage. In big companies, up to hundreds of individual phone lines might be required to keep operations running smoothly. The cost of paying for this many phone lines can easily cause a business to go bankrupt.

Thanks to PBX systems, companies can have a private telephone system of their own by having hosted pbx providers install a central office exclusively for the company and acting as an exchange point. Using a PBX system, a company only needs short extension numbers for each phone unit in the company instead of an individual line. This system also allows phone units within the company to connect with each other.

Hosted pbx providers help companies by drastically cutting expenses made for maintaining their communication systems. Since a single phone line can be used for multiple phones, a company does not have to subscribe for too many individual phone lines. For example, if a company has about fifty users, the company only has to rent about 5 individual subscriptions instead of 50, saving hundreds of thousands of dollars in the long run.

Having PBX phone systems is ideal even for relatively small businesses and even individual homes with multiple phones. Smaller networks only cost around a few hundred dollars. For larger systems, hosted pbx providers can install a system that supports as many as 75 lines starting from as low as $1000 dollars, a lot cheaper than purchasing 75 individual phone lines. The largest systems can consist of up to 20,000 individual units that could cost millions if they were individual lines.

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