Virtual Phone System v/s Private branch exchange


Private Branch Exchange

A private branch exchange or simply PBX, is a network, telecommunication network, used by businesses, for a very long time, to communicate. Private branch exchange uses analogue technology originally. Analogue technology means using continuous analogue signals to transfer the voice signal from one part to another. The analogue system is slow and primitive, thus, making Private branch exchange an outdated option. In Private branch exchange systems, usually, copper landlines are wired together. This makes the system bulkier and irritating- as, a lot of phones ringing together cause disturbance and noise pollution. So, usage of Private branch exchange has reduced drastically.


Virtual phone systems

This system runs on VoIP. VoIP- Voice over internet protocol. This protocol enables send mms from computer, images, audio and videos online using an internet connection. This technology enables phone calls, whether audio or video, using the internet only. Many popular applications, these days, run on this protocol as we have to pay a very less subscription fee. Virtual phone networks have come into play and are used by almost every business. As internet calling is cheaper than traditional telecommunication calling, this adds to great value for internal and external communication purposes of an organization.


Difference between the two-

  1. Telecommunication networks are location-specific and VoIP systems are cloud-based. Work-from-home can’t be done in telecommunication networks.


  1. Communication: internal communication is possible between the organizations for both technologies but the main difference is that internal communication can be configured to multiple devices belonging to the same working member of the organization in VoIP technology. This can’t happen in telecommunication networks. External communication is costlier and tiring in telecommunication networks.



  1. Hardware requirement: Virtual networks require no hardware to set up and use as the existing devices, even personal ones, of the working members of the company, are configured to VoIP but telecommunication networks require a lot of devices and wires to set up, use and maintain. Thus, making the system bulkier.


  1. Conferencing: The option of audio and video conferencing is not available in telecommunication networks but can be done in High definition in virtual phone service.


  1. Virtual assistance: No virtual assistance is provided in the telecommunication network. Virtual assistance with utmost features is offered in VoIP systems.


  1. Time consumption: This is relatively higher in telecommunication networks as compared to VoIP systems. Addressing a query, enquiry, complaint, grievance, feedback and review is done at a much slower rate in telecommunication networks as compared to VoIP systems. Thus, reliability and scalability are less in telecommunication networks.


  1.  Costs: The budget of the entire VoIP phone system and the entire budget of telecommunication networks have a huge difference as VoIP phone systems have lower costs as compared to telecommunication networks.


  1. Transport: Telecommunication network: Analog, ISDN, or PRI.


  1. VoIP: internet connection (Ethernet or WiFi).



We can conclude by the above-mentioned facts that telecommunication networks have very limited features to offer with much higher costs. So, Businesses have replaced it with a more scalable and reliable system known as virtual telephone system.