Meaning – The term private branch exchange, refers to a private telephone network used within an enterprise. Itis a business-oriented phone system designed to supply efficient voice communications between the users of an organization.
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.
Example of usage – “Modern PBX systems help make an organization’s communication simpler and more robust. At the most basic level, a PBX connects communications devices such as hubs, switches, telephone adapters, routers, and phone sets. There are simple at-home PBX systems that upgrade a traditional phone line to cloud-hosted programs as well as complex and expensive corporate communications systems owned and operated by an individual enterprise.”