PBX vs VoIP: Difference and Comparison

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.

Key Takeaways

  1. PBX uses analog technology, while VoIP uses digital technology.
  2. PBX is a hardware-based system, while VoIP is a software-based system.
  3. PBX is more expensive than VoIP.


PBX is a private telephone network used within a company or organization. It allows users to make and receive calls between internal lines within the organization and also provides access to external lines for calls. VoIP is a phone system that uses the internet to transmit voice data instead of traditional phone lines.


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

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.

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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.

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

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

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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.

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

Even if you have an analogue phone station, the best VoIP providers will deploy IP phones to protect 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
  1. https://ieeexplore.ieee.org/abstract/document/7311979/

Last Updated : 13 July, 2023

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8 thoughts on “PBX vs VoIP: Difference and Comparison”

  1. The detailed explanation of how VoIP works, along with the main differences between PBX and VoIP, is quite enlightening. This article delves deep into the technical aspects of these systems, providing a comprehensive understanding.

  2. This article provides an in-depth understanding of PBX and VoIP systems. The technical details and comparison table help establish a clear distinction between the two systems. A very informative read overall.

  3. The arguments presented here emphasize the need for businesses to transition towards VoIP technology, citing its cost-effectiveness and advanced features. A persuasive take on the evolution of telecommunication systems.

  4. The comical irony of this article lies in the fact that PBX’s traffic congestion is contrasted with VoIP’s fast-growing traffic, indicating the swift progress and technological advancement in the field of communication systems. Highly intriguing.

  5. The shift from analog to digital technology in communication systems has presented a significant turning point in telecommunication. VoIP’s ability to transmit voice data over the internet is truly a groundbreaking innovation.

  6. The incorporation of modern SIP and IP phones through PBX systems has revolutionized internal and external communication systems within companies. It has significantly improved telephone infrastructure while saving space and money.

  7. The traditional PBX system has a long-standing history, but the future seems to be leaning towards VoIP due to its digital technology and cost-effectiveness. A clear contrast between the two telecommunication technologies.

  8. It’s interesting to see the difference between PBX and VoIP systems. The detailed comparison provided here gives a clear view of the advantages and disadvantages of each. It’s definitely a helpful guide for businesses considering an upgrade.


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