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What is a PBX?
PBX stands for Private Branch Exchange.  It's basically another way to say "business phone system." Businesses and individuals can own or lease a PBX.  Basic features of almost all PBXs include transfer, hold, conference, redial, caller ID, call forwarding, speed dial, calling groups, and various forms of call coverage.  Advanced features can include call answer and voicemail service, automated attendant, call queues, unified messaging, call accounting, call center applications, and networking.

PBXs are connected to the outside world or PSTN (public switched telephone network) through your demarcation point to the local telephone company's central office (CO). Wiring is also installed throughout your building so that telephone extensions can be connected to the PBX. In this way users can call other extensions connected to the phone system and can also take incoming and make outgoing telephone calls.

Most of today's PBXs can accommodate analog, digital, and IP lines and stations. They also have robust voicemail, networking, and unified messaging features. While there are a large number of PBX makers and a competitive market exists, major manufacturers include Avaya, Cisco, and Nortel.