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Simplified PABX Explained: Features, Benefits, and Historical Evolution

What is  PABX system ? Simplification

The full form of PABX is Private Automatic Branch Exchange System . It works as a central hub.  It is a modern version of traditional PBX phone systems that works as a central communication hub within an organization and manages incoming and outgoing external calls. It provides features like call routing, voicemail, and conferencing.Many telephone systems connected to it , which makes the communication system easier under one networking system.In any kind of organization , it could be big or small there’s lots of people , so that  communication get easier by this PABX as it connects lots of telephone system to it . 

Simplified PABX Explained: Features, Benefits, and Historical Evolution
Simplified PABX Explained: Features, Benefits, and Historical Evolution

History and evolution of PABX system 

The Private Automatic Branch Exchange (PABX) system has a long history that reflects the evolution of telecommunications technology. A PABX is a telephone system used within a private organization to manage internal and external communication. It allows internal users to communicate with each other and also connects them to the public telephone network, all while reducing the cost and complexity of managing individual lines.

1. Early Telephone Systems (1870s – 1920s)

 Early telephone systems were entirely manual, with human operators physically connecting calls using a switchboard. This was the norm for telephone exchanges, where an operator would physically plug cables into sockets to connect callers. In the late 19th century, large organizations or companies had to rely on public telephone exchanges. These exchanges were centralized, meaning all calls, both internal and external, went through a central facility operated by a telephone company.

 

2. Invention of the PABX (1920s – 1950s)

The concept of a PABX system began in the 1920s when businesses wanted to centralize their communication but maintain private control over their phone network. A key innovation was the development of the automatic switch system. Before this, businesses had to lease multiple external phone lines and use public switchboards for all communications.The first commercial PABX systems used electromechanical switches. These systems allowed businesses to connect multiple internal phone extensions to a centralized switchboard that could route calls both within the organization and to the outside world without needing an operator for each call.

 

  • Key Features:
  • Call forwarding: PABX systems allowed for incoming calls to be routed to different extensions or departments.

4. Digital and Computerized PABX (1980s – 1990s)

The transition from analog to digital technology in the 1980s and 1990s marked a major evolution in PABX systems. These digital systems offered greater capacity, flexibility, and reliability compared to their electromechanical predecessors.During this period, PABX systems became fully computerized, with switches and routing decisions controlled by computer systems. This allowed for more sophisticated call management features such as voicemail, call forwarding, and interactive voice response (IVR) systems.

Types of PABX system

  • Analog PABX Systems: The Analog system transmits voice signals using analog signaling methods. It is compatible with traditional analog telephones and infrastructure.
  • Digital PABX Systems: This system converts voice signals into digital packets before sending them. It is compatible with digital telephones and infrastructure, as well as analog devices with adapters.
  • IP PABX Systems: IP BAX system uses Internet Protocol (IP) technology to transmit voice as digital packets through the internet connection or a local area network (LAN). This system is compatible with IP telephones, softphones, and devices, as well as traditional analog and digital devices with adapters.

Benefits of PABX system

1. Cost Savings

 A PABX system minimizes the number of external telephone lines needed by sharing a few lines among many internal users (extensions). This is particularly beneficial for large organizations that would otherwise need individual lines for each employee. Calls between extensions within the same PABX network are free, reducing the overall phone bills for businesses. This is especially useful for companies with multiple departments or office locations. With modern PABX systems, especially IP-PABX or cloud-based PABX, calls over the internet (VoIP) are often far cheaper than traditional PSTN (Public Switched Telephone Network) lines, particularly for long-distance or international calls.

2. Improved Call Management

A PABX system can automatically route calls to the right department or individual based on pre-programmed rules (e.g., automated attendants or Interactive Voice Response systems), reducing waiting times for callers. Callers can be placed in a queue during busy times and directed to the next available agent, improving customer satisfaction. Calls can be forwarded to other extensions or mobile phones when someone is unavailable, and voicemail systems allow messages to be left when an extension is not answered.

3. Scalability

 As your business grows, you can easily add more phone lines, extensions, and features without needing to invest in a completely new system. This flexibility makes PABX ideal for growing businesses.With hosted or cloud PABX, businesses can scale their phone systems up or down with minimal effort. Adding new users or offices becomes a seamless process, making it ideal for businesses with fluctuating needs.

4. Centralized Control

 PABX systems provide a centralized control interface for managing all phone activities (internal and external calls, voicemail, call forwarding, etc.). This makes it easier for administrators to manage users, allocate extensions, and configure system features. Many modern PABX systems integrate with Customer Relationship Management (CRM) systems, email, and other business applications, centralizing business communications and improving workflow efficiency.

5. Enhanced Communication Features

Calls can be easily transferred to different departments or employees, enhancing collaboration within the company.Many PABX systems allow for multi-party conference calls, enabling real-time communication among employees, clients, or partners, regardless of location.  PABX systems can include IVR systems that automatically respond to callers and provide options (e.g., press 1 for sales, 2 for support). This reduces the load on staff and improves the caller experience.

What is the price of PABX in Bangladesh ?

There’s many types of PABX in Bangladesh and their price is also different.  Recently,the price of PABX in Bangladesh has been determined according to size,quality,brand,type,extension line and feature. It could be a minimum 5,500 taka and the maximum rate is 30,000.

In conclusion, a PABX system is a cost-effective and efficient telecommunication solution for businesses, offering features like free internal calls, advanced call management, scalability, and easy integration with modern communication tools. It enhances productivity by improving call handling, supporting remote work, and providing detailed analytics. With the transition to cloud and IP-based systems, PABX continues to evolve, offering businesses greater flexibility, mobility, and reliability while reducing operational costs. Overall, PABX remains a critical asset for modern organizations looking to streamline communication and improve customer service.

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