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What is PABX?

Kurtis Avatar By: Kurtis | Last updated February 29, 2020

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Although you may have never heard of PABX, you will be surprised to learn the important role it plays in communications. So if you don't know what PABX is just keep reading to find out all about this tech exchange.

PABX (Private Automated Branch Exchange) is a phone network commonly used by call centers and other organizations.

PABX represents an improved version of the private branch exchange (PBX). The term is often used as a synonym for telephone system. The PABX is a central digital telephone exchange which links telephone networks to VoIP. It is an automatic system which manages calls between different phone numbers in a particular business or office, as well as calls to and from numbers outside the business.

PABX is widely used in offices, allowing a single access number to offer multiple lines to outside callers while providing a range of external lines to internal callers or the staff.

Since there is a lot o confusion between PABX and PBX you should now that both serve the same purpose and that is acting as a telephone system for a business. So, if your business is looking for a telephone system that is owned by the business rather than the telephone company, then you are looking for a PABX system.

PABX systems makes sure that every internal call made is routed through the PABX.

Different types of PABX

When you are searching to buy PABX it is important to know which type of PABX system will be most suited for your company. There are different types of PABX:

Traditional PABX system

This system connects numerous phone lines to multiple extensions, thanks to the switchboard box. The switchboard box can also connect these calls to a physical phone line of a telephone service provider and at the same time allows you to make external calls.

Hosted PABX System

This PABX represents an offshoot of VoIP technology. One of the advantages of hosted PABX is that it allows users to work from their homes or even on their cell phones while still connecting them to the business telephone system. For this PABX system you do not need a telephone service provider.

Virtual PABX System

This PABX system is suited for smaller businesses with low call volumes and a small number of employees. It is budget-friendly and it is similar to the Hosted PABX. Virtual PABX uses VoIP technology.

Hybrid PABX system

This is a unique PABX system which combines a traditional PABX telephone system with the latest VoIP technology. This combination is completely suitable for companies with phone lines that need to be up all the time. So, if you have problems with your telephone provider (the provider is down), you can use the IP based system and vice versa. Hybrid PABX is very reliable but often a costly system.

IP PABX System

With this PABX system you can send your call over the internet. This system uses VoIP so you do not have to use a telephone service provider to make calls. IP PABX is more affordable compared to traditional PABX systems.

PABX systems are popular thanks to their effective powerful features and the fact that they make full use of the internet. Since the invention of IP telephony, the communication industry has evolved significantly and unified communication systems. Those communication systems combine data, voice, desktop integration, IM, SMS, email integration and conferencing capabilities in one package that has a set of powerful applications.

One of the main advantages of PABX is that it connects people around the world in an uncomplicated way and helps strengthening communication within organizations. Another advantage is the reduced operating costs, because remote calls can be set up over a data network that offers lower rates than a traditional line.


  • Effective powerful features
  • Reliable
  • Good solution for small businesses and big enterprises
  • Flexible
  • Less wiring
  • Costumer support


  • Cost
  • Availability
  • Limitations