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What is a PBX phone system? And its types - TeleCMI

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  • Step into the modern world of business communication with the powerful and versatile PBX phone system!
  • Designed to connect multiple phone lines and streamline communication among employees, customers, and clients, this private branch exchange system is an absolute must-have for any organization, big or small.
  • Whether you're running a startup or managing a large corporation, a PBX system can provide you with reliable and efficient communication, giving your business a competitive edge.
  • But with so many different types of PBX systems out there, how do you choose the right one for your needs?
  • In this blog, we'll take a deep dive into the world of PBX systems and explore their unique features and benefits. Get ready to transform the way you communicate and take your business to new heights!

Overview of PBX Phone systems

  • A PBX phone system is a type of physical telephone system used within organizations to manage incoming and outgoing calls. It connects all the phones within an organization to a central system that routes calls to the correct person or department.
  • The system is composed of several functionalities, including managing incoming and outgoing calls, conference calls, and peer-to-peer transfers, all of which work together to provide employees with the ability to communicate with people inside and outside the organization.
  • When making an outgoing call, the PBX Phone System connects to the public telephone network and routes the call through the appropriate phone line based on the dialed phone number and the rules established within the system.

Types of PBX Systems

Traditional PBX Systems

  • A traditional PBX system is a physical, on-premises device that connects incoming and outgoing calls.
  • Traditional PBX systems can be very expensive to purchase, install, and maintain, as they require specialized hardware and skilled technicians to manage.
  • Adding or removing phone lines or features can be difficult and costly, as it often requires physical hardware changes.
Premise-Based PBX Systems
  • Premise-based PBX systems are similar to traditional PBX systems, but they are software-based and run on a server located on the premises of the organization.
  • Premise-based PBX systems can be highly customized to meet the specific needs of a business.
  • While still requiring hardware and skilled technicians, premise-based PBX systems tend to be less expensive than traditional PBX systems.
  • Premise-based PBX systems require an initial investment in hardware and software licenses.
  • As with any software-based system, premise-based PBX systems require regular updates and maintenance to ensure optimal performance.
  • In the event of a power outage or other disaster, a premise-based PBX system may be vulnerable, as it relies on local hardware and software.
Hosted PBX Systems
  • Hosted PBX systems are cloud-based and run on servers maintained by Cloud PBX Service Providers like TeleCMI.
  • Hosted PBX systems are generally less expensive than traditional and premise-based systems, as there are no upfront hardware or software costs, and maintenance and updates are included in the service.
  • Adding or removing phone lines or features can be done quickly and easily as you can purchase virtual numbers rather than setting up dedicated landlines.
  • Hosted PBX systems can be accessed from anywhere with an internet connection, making them ideal for remote workforces.
Benefits of PBX Phone Systems
  • While the traditional PBX phone system has been in use for many years, upgrading to a cloud-based PBX phone system can provide more efficient benefits to your business. With its advanced features and flexibility, a cloud-based PBX system can enhance your communication capabilities and streamline your operations.
Improved call quality
  • Cloud-based PBX systems use VoIP (Voice over Internet Protocol) technology to route calls over the internet, which provides significant cost savings and flexibility to organizations.
  • With TeleCMI's VoIP Solution, you can further enhance your call quality by choosing the nearest server based on your location. TeleCMI has multiple servers located in different geographic regions, which ensures that you can enjoy crystal-clear call quality regardless of where you are in the world.
  • When you make a call using their VoIP Technology, you can choose the server closest to your location. This makes your call sound clearer and reduces delays. Even if one server stops working, there are other servers available to keep your call going.

A scalable solution

  • A PBX system allows you to add or remove virtual business lines easily as your organization's needs change. For example, if you are a small organization or a startup, you can begin with a cost-effective monthly plan from TeleCMI based on your current business requirements.
  • As your company grows, you can add more phone lines to accommodate additional employees or departments.
  • Furthermore, if you run a seasonal business and expect a surge in call volume during a particular season, you can increase your phone lines to handle the extra traffic.
  • After the season is over, you can reduce the number of phone lines as needed. This level of scalability is not typically offered by traditional PBX systems.

Lower calling costs

  • Since PBX systems use VoIP technology to transmit calls over data lines, they can offer cost-effective call rates for both domestic and international calls.
  • Additionally, TeleCMI offers unlimited calling plans for major countries such as India, the USA, Canada, and the UK through monthly and yearly subscriptions. These plans typically provide lower calling rates than traditional phone lines, making them an attractive option for businesses.

Increased flexibility

  • Following the COVID-19 pandemic, remote working and a "work from home" culture became a necessary option for all businesses. However, if you have an on-premises PBX system, you cannot provide remote working or work from home options as your communication solution is tied up to your premises.
  • This restricts your employees to work from a fixed location. On the other hand, with a cloud-based PBX solution, you can offer your employees the flexibility to call from anywhere using apps and softphones, as the solution is not tied up to a specific location.

Enhanced security

  • Keeping communication secure is important for every business. TeleCMI has an ISO certification, which means the company has set up strict security measures to protect customer data.
  • They also use other security measures like two-factor authentication, intrusion detection, and regular security audits to ensure maximum protection. By choosing a reliable Cloud PBX System Provider like TeleCMI, businesses can be sure that their communications are safe and their information is protected.

Cost-Efficiency And Ease of Use

  • When it comes to running a business, one of the most important factors to consider is cost efficiency. A cloud-based PBX phone system can save your business money in a number of ways, from eliminating the need for multiple phone lines to reducing long-distance charges.
  • Additionally, a cloud-based PBX phone system can be easily integrated with your existing CRM tools. This integration allows you to keep and track all your customer information on a single platform, which can reduce costs, decrease your employees' workload, and enable them to focus on other priority tasks.
  • In a virtual PBX system, all of your communication transactions take place in the cloud, which means you don't need to worry about maintaining any physical hardware on your premises.
  • This saves you from the upfront costs of buying bulky hardware and eliminates the need for ongoing maintenance expenses.
  • With a cloud-based system, your Cloud Telephony Service Provider will take care of all software updates, backups, and system upgrades, so you can focus on your business operations without worrying about the technical aspects of your communication system.

How to Choose the Right PBX System

  • When it comes to business communication systems, there are many factors to consider. A PBX phone system can be a great option for businesses of all sizes, but it's important to choose the right PBX system for your specific needs. Here are some things to keep in mind when choosing a PBX system:
  • *How many lines do you need?
  • *Do you need features like multi-level IVR, intelligent call routing, etc.?
  • *How much can you afford to spend?
  • There are many different types of hosted PBX service providers on the market, so it's important to do your research before making a purchase. Once you've selected the perfect PBX system for your business, you'll be able to enjoy the benefits it has to offer.
  • Here are a few things to consider when choosing a PBX system for your business:

Consider Your Business’s Needs

  • As your business grows, your phone system needs will change. It’s important to choose a PBX system that can grow with you and has features that fit your specific business needs.
Number of employees
  • The size and type of PBX system you need, or the plan you should choose, depends on the number of employees in your company.
  • If you have a small team, a basic plan may suffice but for a large team or future expansion, you'll require a more robust PBX system with advanced features such as multi-level IVR, intelligent call routing, conversational AI, custom caller ID, voicemail, and advanced call analysis."
Business hours
  • Another thing to consider is your business hours. If you have a 24/7 operation, you’ll need a PBX system that can handle after-hours calls. Look for systems with IVR, call forwarding, and voicemail capabilities so your customers can always reach someone, even when your office is closed.
  • Of course, budget is always a consideration when choosing any type of business communication platform. Cloud PBX or VoIP systems are generally more affordable than traditional PBX systems, but not all providers have the features your business needs. Hence work with a qualified service provider to find the best PBX system for your budget and needs.
Research the Available Options
  • When researching the different types of PBX systems available for your business, there are a few key things to keep in mind. First, you need to determine which features are most important to your business and ensure that the PBX system you select has those features.
  • Second, you need to decide on a budget for the PBX system as there are various options available at different price points. It is important to find one that fits within your budget. Finally, reading online reviews of PBX systems can help you gauge which ones have the best features and highest customer satisfaction ratings.
  • There are three main types of PBX systems: Traditional, on-premise and cloud-based. Each type of PBX system has its unique set of functionalities, as mentioned earlier. Therefore, it is essential to carefully consider each option before making a decision.
  • To sum up, a PBX phone system is a really helpful tool that can make communication in a business much easier. It can manage calls, route them efficiently, and be customized to fit a business's needs. There are different types of PBX systems including traditional, on-premise, and cloud-based, each with its own benefits.
  • TeleCMI has a cost-saving cloud PBX solution that works for businesses of all sizes, and you can try it out for free for 10 days before you decide to buy it. You can contact TeleCMI today to learn more about how our cloud PBX software can help you communicate better in a busy environment.



A PBX (private branch exchange) system is designed to manage phone calls for a company or organization. It acts as the central communication hub for the business, connecting employees with external and internal callers. By using a PBX system, businesses can improve their overall communication efficiency and productivity.


PBX systems are used by businesses to manage their communication needs. PBX systems can be set up using either traditional landlines or Voice over Internet Protocol (VoIP) technology. In the past, most PBX systems were based on landline connections, using traditional phone lines from the telephone company. However, with the rise of internet connectivity, many modern PBX systems use VoIP technology instead, which allows voice calls to be transmitted over the internet rather than through traditional landlines.

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