What is the Difference between PBX and VoIP?

August 18, 2017
Category: Hosted PBX, Phone Systems, VoIP

Sometimes it seems that the telephone communications industry does its best to create as many acronyms and confusing terms as possible. Two such terms, PBX and VoIP are no exception. Today, we’re going to define these terms and explain the differences between them to help you become better informed when shopping for a business phone solution.

What is the difference between PBX and VoIP?

What is PBX?

Public Branch Exchange, PBX for short, has been around for years. It is a system that is primarily used by businesses who need a dedicated, on-site network for their phones. PBX systems use standard telephone lines to send and receive telephone calls and must maintain some form of an on-site server and manual control board. When calls come in, they are routed by the on-site equipment to the appropriate phone in the office.

What is VoIP?

Voice over Internet Protocol, VoIP for short, is a new-comer in the telecommunications industry. VoIP uses the Internet to place and receive phone calls. Whereas a traditional phone line uses hard lines to make connections and on-site hardware; a VoIP telephone system simply needs an active connection to the Internet as well as a computer or IP phone.

What is the Difference between PBX and VoIP?

So what makes these two services different? The major difference is that a PBX system uses traditional phone lines whereas a VoIP system will use the internet to send and receive phone calls. This means that a VoIP system will have a lot more flexibility with the types of features it can provide as well as the types of equipment used.

Should I Use PBX or VoIP?

While there is no one “right” answer as to which type of phone system to use, more and more businesses are choosing to switch to a VoIP phone service for its flexibility. The only drawback of a VoIP connection is that it depends on your Internet connection to be able to handle the bandwidth. If you field multiple calls a day while using your Internet simultaneously, you may want to consider simply upgrading your Internet connection.

For more information on PBX or VoIP phone services, get in touch with the business phone solutions experts at DataStream Communications. Here at DataStream, we are a top business phone systems company in Maryland and know exactly how to get you the best business phone solutions for your needs. For a free demonstration of our services, give us a call at 800-974-2605 or fill out the form on our website, today!

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