VoIP vs. Digital PBX

Voice over Internet Protocol (VoIP) and Private Branch Exchange (PBX) systems are two of the most popular business phone systems on the market. They both have the same end goal, allowing you to make and receive calls, so what’s the difference?

Voice communication is an essential part of your company’s success, so it’s important that you know what options you have and how they work.

In this article, we’ll break down each of these major phone systems, including costs, advantages, and maintenance.

What is PBX?

Digital PBX phone systems are the traditional phone systems that have been used by businesses for decades. All office desk phones are connected using the same network. When you use PBX, you’re using extensions to redirect calls, allowing you to have more phones than phone lines at your business.

What is VoIP?

VoIP is a business phone system that transmits voice data through the internet. When an employee picks up the phone to make a call, their voice is recorded, turned into data packets, and sent to the VoIP provider where it then converts back and connects to your target’s phone.

Although this process sounds very lengthy, it’s actually extremely fast, with voice data traveling at the speed of light. In fact, there is no speed difference between VoIP calls and analog calls.

VoIP vs PBX Cost

When it comes to the cost of these two phone systems, VoIP is cheaper than PBX because it requires less infrastructure. With VoIP, all you need are IP phones, an Internet connection, and a source of power. Monthly costs are also cheaper with VoIP because you follow a subscription model rather than paying for individual phone lines. With America’s Phone Guys, you can pay as little as $19.95/month when using GoToConnect (Formerly Jive) for service. Sometimes even less if your operation is larger.

These aren’t your only options, of course, there are also hybrid PBX systems that are more like traditional digital PBX switches but use a form of VoIP called SIP Trunking for the phone service. These systems are great options for businesses with multiple offices and limited budgets. They offer the best of both worlds.

VoIP vs PBX Call Quality

Modern VoIP systems use the same codecs as used for PSTN. If you have insufficient bandwidth or network configuration issues, you may experience poor quality voice calls with VoIP.

PBX call quality can be very good. In fact, many PBX systems today use VoIP technology.
In the end, your voice quality will greatly depend on your hardware, like your modem, router, VoIP gateway, and switches.

VoIP vs PBX Reliability

PBX systems are generally viewed as being more reliable because they don’t rely on a stable Internet connection like VoIP. However, your VoIP reliability also depends on your provider. America’s Phone Guys has hundreds of positive reviews for satisfied customers throughout the area.

VoIP vs PBX Flexibility

VoIP systems have the advantage when it comes to flexibility. With VoIP, you are only limited to your bandwidth and Internet connection, so you can add users as your company grows.

We at America’s Phone Guys understand that selecting the right business phone system can be a daunting task as a business owner, and we’re here to help. We’re your local licensed telecommunications contractor in the Portland OR and SW Washington area. We offer our own plans and partner with some of the industry-leading providers, so you can get the best value to fit your needs. Contact us today to request your free quote!