PBX or Private Branch Exchange used to be the preferred solution for connecting the internal phones to the external lines of the companies and carry out functions like call holding and forwarding. As Voice over Internet Protocol (VoIP) stepped into the market, many companies have shifted to this low cost solution. Here are some differences between the two technologies to make your decision easier:

• Quality:
  VoIP voice quality depends on your service provider or the Internet connection. If you use a reliable service provider like bvcomm.com then you would have less to worry about the quality. Internet connection should also have enough bandwidth to support the number of telephones you have. PBX quality never faults.

• Flexibility:
  VoIP is the leader in terms of flexibility as you can add as many telephones as you want depending on your internet bandwidth. But with PBX, you would have to pay a whole lot extra to add capacity as they are designed for a specific number only.

• Reliability:
  PBX is more reliable as compared to VoIP as in case of a power failure or any other kind of reason because of which your internet is down, VoIP would stop functioning entirely. VoIP depends entirely on the internet connectivity. So, if the connectivity has some problems like the connection is slow, then the quality won’t be the best either.

• Emergencies:
  The service providers have been working really hard to make VoIP reliable to make 911 calls efficiently, but the success had its ups and downs. As PBX has complete details of location and caller ID, when it comes to emergency services, it is easier to pinpoint the location in a PBX network. In VoIP, on the other hand, as the VoIP phone does not have any permanent location as it connects the call using internet, it is difficult to do the same.

• Cost:
  If we compare both the technologies, VoIP is clearly the winner in terms of costs as for both monthly charges as well as initial investment, VoIP is cheaper than PBX. VoIP has a nominal setup fee as you can use it with your existing telephone line. The calls are completely free. Some providers might charge for out-of-country calls though. For PBX, you would have to revamp your entire office equipment, which involves substantial monthly charges and equipment purchase costs.

These differences would help you pick the better phone service according to the needs of your company.