What is VoIP PBX – How VoIP PBX Works?


VoIP PBX or IP PBX system has been used worldwide to handle company business voice communications. The IP PBX hardware device can be used for routing and distributing incoming calls from any external line to an internal line. It makes sure that a company doesn’t have to get a separate and dedicated line for each employee by making it a lot more efficient to share lines. It also permits the employees in the office to have a conversation with each other through extension numbers normally 2 or 3 digits rather than having to dial a whole phone number every time.

Steadily over the last decade, companies have substituted analogue PBX with VoIP PBX systems (also called hosted VoIP PBX systems).

How is VoIP PBX Different?

VoIP PBX – also known as IP PBX – can switch between VoIP users so that employees can share external lines among themselves. These boxes have the capability to handle traditional users or can switch between VoIP and traditional users. Essentially, a VoIP PBX can handle VoIP calls just like a traditional PBX box handles analogue calls. Generally, the callers experience doesn’t change at all. Employees are able to still answer the calls and make calls to the internal and external numbers. Nonetheless, the fundamental technology and architecture is what makes IP PBX hardware different from conventional enterprise boxes.

How does VoIP PBX Works?

what is voip pbx

A VoIP phone system generally includes the following components:

  • SIP phones

  • VoIP PBX server

  • VoIP Gateway – optional


The SIP phones can work as soft clients or else dedicated IP desk phones. The endpoints can even be PCs with microphone or mobile phones with VoIP clients. The IP PBX system functions as a server and every phone in the enterprise is registered on it. The server has the record of every phone number in the company with the SIP addresses of the user phones.

Generally, SIP is the mainly utilized protocol for VoIP implementations and it is compatible with the majority of IP services, hardware and providers. All the Incoming calls are directed to a suitable client by looking up the SIP address. The outgoing internal calls are directed to the specific worker according to the relevant settings and generally, external calls are routed to the VoIP gateway. The gateway can connect to PSTN and ISDN lines; therefore it can span numerous networks. Alternatively, external calls can be directed to the destination by a VoIP phone system provider.

IP PBX or VoIP Gateways

The VoIP or IP PBX gateway can be integrated into the system itself however a lot of organizations rather use gateways given by the VoIP service provider. VoIP gateways are utilized to connect the system with the PSTN network. Generally, PSTN phone lines are connected to the VoIP phone system through FSX and FXO ports, depending on the direction of travel. VoIP gateways might be accessible as dedicated devices or installed as PCI cards.

Virtual VoIP PBX

The majority of VoIP PBX features are controlled and configured by software which means that the system doesn’t need a have dedicated hardware constantly.

Occasionally the VoIP PBX is just a blend of hardware and software installed on a regular PC, performing similar functions as a normal VoIP PBX. It is known as a virtual IP PBX.

Hosted VoIP PBX

Even though VoIP PBX systems provide a lot of advantages, a company still has to buy, maintain and upgrade the system from time to time. This procedure needs resources – capital, staff and time. This paves the way for hosted IP PBX, in which the provider will buy and keep up all equipment necessary to give VoIP services and business just has to sign up for a plan to start making calls. Usually, every feature related to the physical PBX box is provided through the Internet using cloud technology. It frees up the company’s resources and they can be directed to additional productive uses.

Benefits of VoIP PBX


  • One apparent advantage is the incredible cost savings, particularly for internal and international calls. While these calls travel over the Internet, they are basically free for workers who are registered on the same corporate network.
  • In the same way, international calls will cost a fraction of what is charged by carrier operators as they don’t travel through the PSTN network.
  • A VoIP PBX system provides every business feature that all companies can depend on such as Caller ID, voicemail, conference calling etc. which are all supported and customers will have no problem in switching over to the new system.
  • Quite often, offered features get better upon and assimilate better with the other digital systems being used by organizations. A fine example is a voicemail that is significantly improved by using IP PBX.
  • Voicemails can be forwarded to any worker’s email address; this permits the clients to classify and manage their voicemail just like they handle other email messages.
  • In addition, IP PBX systems let workers to have granular control over particular settings. Such as, an administrative can configure the system to automatically forward incoming calls to voicemail during a specific time of the day whilst still allowing calls from consumers.
  • On the other hand calls from a specific number can be forwarded to mobile while others are directed to a secretary’s number. This permits flexibility for workers who are travelling, working from home, operating from a customer site etc.


Should You Switch to IP or VoIP PBX?

Switching over to IP or VoIP PBX makes sense for companies that would rather have control over the enterprise network. Nonetheless, it does mean that the business has to have the employees who have the necessary knowledge and experience to install and maintain VoIP systems. Occasionally, the whole network will have to be overhauled to facilitate extra bandwidth for VoIP calls, new IP phones for workers, optimizing the wireless/wired network etc. which can turn into a costly and time-consuming project. Therefore a lot of companies – particularly small and medium businesses – choose to use hosted IP services so that they can benefit from every benefit, without shouldering the maintenance and set up. Even if the ultimate VoIP deployment turns out to be a lot more costly than planned, it can still give incredible benefits in terms of increased competence, decreased costs and advanced features.

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