Difference Between PBX and VoIP

Modern SIP (session initiation protocol) and IP phones are now connected via PBX systems. Voice over Internet Protocol and public switches are two ways to achieve the same goal: making and receiving calls.

The traditional PBX system has been around for a long time and is mainly used by companies that need a dedicated telephone network. VoIP is a relatively new technology that allows users to make calls over the Internet.


The main difference between PBX and VoIP is that the term PBX stands for public branch exchange which refers to a type of private telephone network used by businesses. VoIP stands for voice over internet protocol which is based on a fundamentally new concept: calls are routed over the internet.


PBX is a small telephone network that works within the company and also provides multiple lines to external telephone providers where you can make or receive calls.

Instead of having a single phone line for each office or department that is only utilized for a fraction of the time, the firm may use PBX to decrease this to a few lines while still maintaining a phone unit in each office.

VoIP is a relatively new telecommunications technology. It sends digitized voice data from one location to another through a packet-switched network similar to the Internet.

Telecommunications firms can fit more talks into the same amount of bandwidth as a result of this.

Home users can use the software on VoIP phones or laptops to contact other online personnel for free.

Comparison Table Between PBX and VoIP

Parameters of ComparisonPBXVoIP
Full formPrivate Branch Exchange Voice over Internet Protocol
FunctionA PBX allows employees of a large company to receive and make calls without depending on a public phone company’s switching and routing services.It allows you to make voice calls via the Internet rather than through a traditional (or analogue) phone line.
Traffic jamTraffic congestion may develop.Fast Growing.
CapacityLess number of linesMore number of lines
Real-time reportingDoes not includeIncludes real-time reporting

What is PBX?

The acronym for “Private Branch Exchange” is “Private Branch Exchange.” A PBX is a phone switch that has been configured and is installed at a specific corporate location.

The PBX handles both external and internal communications. The PBX is provided with phone company-specific signalling, such as busy signals, dial tones, ringing, and so on.

A PC-based Key system or telephone system can be used to develop PBX-like applications. The ACD software is sometimes included in the PBX as an add-on package to increase its usefulness.

The PBX is the “machine” that directs incoming calls, allows a firm to shift calls to other extensions, and contains all of the specifications for how a business phone system should operate.

To make calls, the PBX can use either telephone hardware or computer-integrated telephony (CIT), or a softphone system.

A cloud PBX is a hosted communications system that provides the same private branch exchange capabilities as an on-premise PBX without the extra cost of infrastructure management.

What is VoIP?

First, VoIP providers struggled to provide even low-quality conversations. Today’s VoIP services offer HD voice calling as well as a number of advanced business phone features.

Your speech is recorded and converted into data using VoIP phones. In real-time, they compress and transform these files into data packets.

Succeeding that, these packets are transferred to your VoIP provider, who transforms them and connects them to the target phone.

Data travels at the speed of light, despite the fact that it is a long and hard process. Analogue and VoIP calls are identical in terms of speed.

The working principle of this technology is to convert voice signals into data packets, which are sent to another caller through a data network, and then unpacked as a voice signal at the other end.

Switching to VoIP might save you money on text services. With a VoIP service, long-distance and international calls are usually free. Your internet connection is the only cost.

Even if you have an analogue phone station, the best VoIP providers will deploy IP phones in a way that protects your investment in current phone equipment.

Main Differences Between PBX and VoIP

  1. PBX stands for Private Branch Exchange, and VoIP stands for Voice over Internet Protocol
  2. A PBX allows employees of a large company to receive and make calls without depending on a public phone company’s switching and routing services, whereas VoIP allows you to make voice calls via the Internet rather than through a traditional (or analogue) phone line.
  3. Traffic congestion may develop in PBX, whereas traffic is fast growing in VoIP.
  4. PBX has fewer lines, whereas VoIP has more lines.
  5. PBX does not include real time reporting, whereas VoIP includes real time reporting.
Difference Between PBX and VoIP


PBXs are reliable, secure, and provide excellent call quality, but they are expensive to set up and operate.

VoIP, on the other hand, is extremely adaptable and expandable, and the cost of maintaining the infrastructure is far cheaper than with traditional lines.

However, VoIP performance is heavily dependent on the ability to connect to the Internet; as the speed drops, so does the quality of calls.

The traditional PBX system is suitable for enterprises that take up limited space and have the least call traffic. Because complex functionality and constant expansion aren’t required in this context, PBX is the ideal solution.

Businesses with a mobile workforce, seasonal fluctuations in call traffic, numerous locations, or a need for sophisticated functionality but should investigate VoIP phone systems.

Request a consultation with a managed voice provider before settling on a phone system to receive more information on which phone system best matches your company’s operational needs.


  1. https://citeseerx.ist.psu.edu/viewdoc/download?doi=
  2. https://ieeexplore.ieee.org/abstract/document/7311979/
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