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What is the difference between a pabx and voip phone system?

When selecting telephone systems and equipment, you’re probably wondering, “What does pabx and voip mean?” If you are curious about what they are, read on to find out more.

Pabx (also known as pbx) stands for Private Automatic Branch Exchange. They are your traditional business telephone systems i.e. landlines. Here, pabx systems are reliable in emergencies, power outages and call quality is consistent. Its simplicity and ease of transferring internal calls makes it ideal for small businesses. However, the initial and maintenance costs of this commercial phone system are generally higher than that of voip.

Voip is short for Voice over IP and involves modern technologies that transmit audio communications via an IP network like the internet. One of the main benefits of voip telephone systems is scalability, making it cheaper for international calls. It’s flexibility in facilitating group calls makes it ideal for large businesses but the connection quality may be limited by bandwidth.

Keeping this in mind, you’ll have a better understanding of the type of office phone system your business requires when searching for your next business telephone system.

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