Apr 25, 2023 / By Sofia Jackob

Pbx Vs Voip: Key Difference Based on Pricing, Pros & Cons

PBX vs. VoIP: What's the Difference Between Them?

The best phone system for your personal or business needs is here! VoIP and PBX are the telephone solutions you can trust to improve your business communication. But, knowing which system will help upgrade your business in the long run can be a challenge. Understanding the differences between VoIP and PBX systems by digging into the pros and cons can help you choose the best system for your needs.

Choosing a phone system that corresponds to your business needs can help your business run more smoothly. Having the right phone system improves the efficiency of your communication with your team and clients. To accomplish your communication goals, you need a system that performs well and costs less. Learn the differences between PBX and VoIP systems, along with the benefits of each system.

PBX vs. VoIP: Key Differences Based on Pricing, Pros & Cons

The PBX and VoIP phone systems are both reliable for ensuring seamless communication in and out of your business area. However, as these phone systems have different features and strong suits, you should break down the differences between PBX and VoIP to weigh which is better for your business.

Business Phone Benefits VoIP phones PBX
Call Method Internet-based calling, call using the internet Operate through the use of VoIP, analog, or digital lines
Reliability Reliable phone system that ensures customers are forwarded to an available agent with no unreachable calls or busy signals Not as reliable, with more costly downtime
Flexibility Expand or add communication lines to existing systems Adapts to changing work conditions as necessary
Integration Loads of integration, creating a unified phone system Handles calls and interacts with other apps through VoIP
Advanced features Seamless communication with advanced features like auto-attendant, voicemail, etc. Has a few calling features, such as call recording, music on hold, etc.

What is a VoIP?

Calls made using the internet is what VoIP is all about. This kind of phone system transforms your voice and compresses it into electronic data that is sent to the receiver over the internet. This process happens in real-time, virtually sending and receiving calls as fast as possible. With VoIP, you can expect unique and customizable advantages for your business.

How does VoIP work?

The VoIP business phone system converts analog voice signals to produce digital signals that are then transported over the internet. This method is called "packet switching," as data is sent to a specific receiver when needed. So, when the data conversion happens, the signals that the sender transported will be received through IP networks.

What is a PBX?

A Private Branch Exchange (PBX) is a business phone system that connects all company phones to one network. This network allows employees to communicate with people inside and outside the company. The PBX phone system uses extensions for call redirection instead of traditional, physical phone lines. Instead of each employee having their own phone number, PBX consolidates all employees with the same number and differentiates between associates with extension numbers. PBX phone systems are fixed into one location where the phone hardware is located.

How does PBX work?

The PBX system works with the use of the Voice Over Internet Protocol, analog phones, or digital phone lines. So, when PBX internal IP calls are converted into conventional signals, the message will be sent across the public telephone network where users can talk to each other. The PBX system can also route or transfer incoming calls from one phone to another.

PBX Phone System vs VoIP: Which is Best for Your Business?

There are several advantages and disadvantages to using PBX and VoIP phone systems. However, business owners opt for these systems as they are affordable, convenient, and easy to use. That said, you need to compare the two communication systems to choose the right phone system for your business.

Pros of VoIP

  • Reliability

    VoIP has been providing superior reliability to businesses across the world. As the data packets reach their preferred destination, there will likely be no unreachable calls or busy signals as the system works so quickly.

  • Integration

    The best thing about the VoIP phone system is that it can be integrated with other technologies. These integrations allow you to control the phone functions, creating a unified phone system.

  • Advanced features

    VoIP business phone system gives you many advanced features to try when communicating with your clients and team. These features best help your business build a reputation for seamless communication.

Cons of VoIP

  • Call quality

    VoIP produces a low sound quality if you use an unstable internet connection. Dependency on the internet can complicate the call process if your internet is down or you are experiencing a weak signal. Poor internet could also cause delays while using VoIP, significantly impacting the VoIP call quality.

  • Dependency to bandwidth

    Being dependent on bandwidth can affect the overall phone system process. If there is an insufficient bandwidth supply, you will likely have trouble with the call and network speed.

Pros of PBX

  • Infrastructure

    PBX phone systems have excellent infrastructure that enables you to use Cat3 for better data communications. This means PBX phone systems do not rely on the internet to transmit call data. This makes PBX an ideal phone system for larger organizations due to its simple structure.

  • Flexibility

    Both phone systems are flexible, but PBX has been more flexible in that it can adapt to the changing conditions of your business. For example, you can customize adding and assigning business phone numbers with PBX.

  • Centralized Control

    One of the best features of the PBX system is the centralized control that allows all phones in your company to be accessed by one number. Plus, PBX doesn't block new calls from being started while one phone is in use, so users can place new calls even if other callers are connected to the same number.

Cons of PBX

  • Expansion

    If you intend to grow your business significantly, there are a lot of steps to scaling PBX. You will need various physical equipment to expand your PBX system, including ports, cards, and cabinets. All the details and equipment needed to expand your communications service with a PBX system mean it is not the best choice if you are looking for a scalable phone system to keep up with your growth.

  • Management

    Managing the PBX system can be challenging compared to VoIP phones. Since the system works through physical equipment like cards and cabinets, your provider must come onsite to install the necessary PBX components physically.

VoIP vs. PBX Cost Comparison

One known difference between VoIP and PBX is the overall costs a business will spend on the phone systems' initial and final setup. Here is a brief comparison of the two:

Setting up a VoIP phone system is cheaper than the PBX system. Since VoIP only requires an internet connection, you only need to invest in the router, computer software, and phone you will use.

The initial cost for a PBX system is higher than VoIP due to the many hardware and software licenses and equipment that must be purchased. You must pay upfront for all the necessary equipment to get the system working.

Which business phone system is best for your business?

Looking for the best business phone system to improve your business communication requires research and planning. There are many phone system options out there, so starting your search might be confusing at first. That said, narrowing your choices to VoIP and PBX can help you get a clearer idea of the system you need to be investing in.

Whether you want VoIP or PBX, Callture has the right phone system for you. We have various VoIP phones that you can use for your business communication that is affordable, effective, and gives you guaranteed reliability. We also have a virtual PBX that is contract-free. Interested? Have a Callture specialist contact you today!

PBX vs. VoIP: What's the Difference Between Them?

Frequently Asked Questions (FAQs)

Since VoIP has many advanced features to offer, it is much better than the PBX system. For example, it has caller ID, call forwarding, and voicemail features, making every call easier and more convenient.

Using VoIP for your business communication does not need a PBX system at all. Since VoIP works through the internet, you only need a stable internet connection and a VoIP phone to make a call of your own.

PBX is an analog type of phone system. However, PBX has started offering digital systems in recent years in an effort to stay modern and match competitors. As a result, several virtual PBX systems are available for businesses in any industry.

Have a Callture specialist contact you today!

Note: The listed features may not be included in all packages and pricing options and are subject to availability.