PABX stands for Private Automatic Branch Exchange, which is a telephone exchange or switching system that serves a private organization and allows sharing of central office trunks between internally installed telephones, and provides intercommunication between those internal telephones within the organization without the use of external lines. The term PABX is often used interchangeably with PBX (Private Branch Exchange), which is a telephone network owned, administered, and used within an organization. However, PABX is an improved version of PBX that automates the switching tasks needed to connect calls between extensions, while PBX needs human switchboard operators to connect phone users.
PABX systems are a business solution for companies that need many lines for in-house and outside calls. They allow companies to use a single access number that has several extensions, which is cheaper compared to using many landlines linked to the public network. PABXs offer many other calling features and capabilities, such as auto attendant, call conferencing, call hold, and call transfer. Modern PABX platforms allow businesses to monitor calls, so they can keep track of instances like their customer service team becoming overwhelmed every Monday morning.
PABXs have evolved to use IP (internet protocol) communications, and they now work over a LAN (local area network) or internet connection, which is often called an IP PBX. The system can alert other users when the extension a caller wants is busy, connect with calendars and automatically set a users availability accordingly, and even enable caller ID.
In summary, PABX is a telephone system that serves a private organization and allows sharing of central office trunks between internally installed telephones, and provides intercommunication between those internal telephones within the organization without the use of external lines. It is an improved version of PBX that automates the switching tasks needed to connect calls between extensions, and it offers many calling features and capabilities. PABXs have evolved to use IP communications and offer automation features that can enhance business efficiency.