Private branch exchange

Meaning – The term private branch exchange, refers to a private telephone network used within an enterprise. It is 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.”