How does a Hosted PBX System Work…?



Fig 1: An Overview of Hosted PBX System


Hosted PBX technology is a VoIP based telephony solution which delivers a hosted service. The PBX service is named so because the telephony system is controlled and operated by third parties at the provider side. That is, the employees are provided by a virtual PBX for all intents and purposes. The employees and users can simply enjoy the telephony services from anywhere using compatible equipment and a reliable network. The hosted PBX service is also referred to as IP PBX or Virtual PBX because the underlying medium used in hosted PBX telephony is the Internet connection.

In a hosted PBX system, both voice and Internet services can be delivered using a single local loop circuit utilizing the Internet Protocol (IP). The voice calls are then prioritized and transmitted over a securely managed private network of the provider who runs the session Initiation protocol (SIP) for VoIP (Voice over IP).

Working of Hosted PBX System

The hosted PBX system works based on the VoIP technology. Initially get a reliable internet connection and also keep VoIP compatible devices such as IP phones, laptops, tablets, or anything else. A company doesn’t require buying expensive hardware from the VoIP service provider to implement a Hosted PBX system. This is so because the expensive hardware and servers are maintained at the service provider side. That is, the hosted PBX devices are hosted at an off-site location. This off-site management of PBX devices frees the employees from the overheads of managing and maintaining expensive hardware at their work-space. An IP based network or Internet connection is used to establish the connection between the client’s telephone system and the hosted PBX.

The VoIP service providers will do all the configurations for you or they provide you with a web based interface to configure your own virtual IP PBX over the internet. The telephones will be set up with the hosted PBX as the SIP registrar or Proxy. 

When a call arrives, the Hosted PBX will route that call to the corresponding client. The call will be then answered by an employee or by an automated greeting. The workers can attend their calls from anywhere in spite of their locations. If the call is answered by an automated greeting, then the clients can dial an extension, listen to the information or can connect to the relevant department, etc. Advanced calling features such as transferring or diverting calls, put them on hold with background music or messages, setting up conference calls, etc can be utilized effectively when a call is attended. When the calls are not attended by anyone then provisions for sending Voice Messages to an email as a .WAV file attachment is also available. In Hosted PBX system, the calls between phones, users and extensions are always free irrespective of the device location. It also provides free internal calls and offer calls. Hosted PBX services allow setting up your extensions to ring multiple phones at the same time.

How does a Hosted PBX System Receive Calls?

  1. Callers dial your company’s phone number.
    The VoIP provider gives you a new number. You can either use this new number or your existing number. Local, toll-free and international numbers are available. You can also have multiple phone numbers.
  2. Callers are greeted by an auto attendant.
    The custom auto attendant greeting normally contains options for dialing departments or individuals. Your own employees can also answer the calls as a live operator.
  3. The VoIP provider manages the call routing through your company
    The callers will select the person or department they want to connect and the hosted PBX routes the call to the selected person. Proper queuing options can reduce the hold time and also increases efficiency.
  4. Workers can receive calls from anywhere.
    The employees can receive their calls from anywhere around the world using any type of phone. It also facilitates voice messages and fax messages available online or as email attachments to your inbox.

    How does a Hosted System PBX Make Calls?
    Using a VoIP phone it is very easy to make calls in hosted PBX system. Just pick up the VoIP phone and dial the corresponding number. Direct dial extension to extension is possible. There will be no additional or long distance charges.

    The overall working of the hosted PBX system clearly portrays how flexible and economical it is to make and receive calls. The cost efficiency of hosted PBX system along with its advanced features will undoubtedly help you to renovate your business communication standard.


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