Seven Common Hosted PBX Questions

Seven Common Hosted PBX Questions

Learn the basics of a hosted PBX system, how it works and how it can support your company with the answers to a handful of frequently asked questions.

What is hosted PBX?

Hosted Private Branch Exchange (PBX) is a cloud-based phone system that delivers telephone system functionality over an internet connection. The system is managed by a third party provider who houses the IP-PBX in their data center and is also responsible for supplying the technology and supporting services.

The customer has a standard deskphone handset and can also use a softphone on a computer or smartphone to connect to the internet and back to the company’s hosted PBX system. Customizable features include call transfer, call hold, call-park, call waiting, auto-attendant and voicemail. Hosted PBX is a comprehensive, one-stop shop voice solution and represents a more cost-effective alternative to traditional office telephone solutions.

How does hosted PBX service work?

Hosted PBX relies on Voice over Internet Protocol (VoIP) technology to transmit data as digital packets rather than via traditional copper phone lines on the public switched telephone network (PSTN).

Each VoIP telephone is associated with a unique IP address. Hosted PBX converts the public phone network to an IP address. When a phone number is dialed, the hosted PBX switch searches and delivers the call to the VoIP telephone.

What are the benefits of using hosted PBX?

Hosted PBX comes with a series of great benefits. These benefits include:

  • Lower hardware costs - no need to purchase an expensive PBX system, only the phones
  • No ongoing maintenance - the service provider is responsible for the upkeep of the system
  • Mobile and remote integration - telecommuting or working in the field is straightforward
  • Advanced features - auto-attendant, call transfer, voicemail to email and more
  • Scalable - adding phones is simple and there is no need to purchase additional PBX hardware
  • Business continuity - ensure your business operations remain uninterrupted
  • Long distance calling - reduced cost when compared to traditional systems
  • Portability - move your phones to a new office with ease

You can find more information on these benefits at our blog on the benefits of a hosted PBX system.

Hosted PBX allows employees stay connected to your business on-the-goCan my existing internet service work with hosted PBX?

As long as you have a stable, low latency connection to the internet, your internet service will be able to support a hosted PBX system. Most providers will encourage a dedicated connection but will typically guarantee voice quality over a third party internet service providers’ solutions with proper pre-installation testing.

What happens if my internet connection goes down?

If the internet connection suffers from an outage, callers will be routed to the number that was set up as the call forwarding number. If this is not set up, calls will be transferred on to voicemail. These actions will take place until the connection is reestablished.

How are lines, extensions and features added or removed?

Upon initial installation, a voice engineer will work closely with the customer to ensure lines, extensions and features are set up as desired. Moving forward, customers will have access to an online portal where changes to the hosted PBX preferences can be made without hassle. Alternatively, contacting the provider directly is always as an option.

Does a hosted PBX solution support long distance and international calling?

Hosted PBX systems can support both long distance and international calling. The service provider will determine the rates for these types of calls. Long distance is typically a flat fee while international destinations are charges vary based on several factors.

Hosted PBX is an excellent option for businesses seeking a reliable, affordable and scalable office solution. Our recent blog post on what kind of phone system should my business have? seeks to help you determine what type of PBX system might be right for your company.

If you have any more questions on hosted PBX, VoIP or additional voice and data solutions for your business, please contact our team at or 1-855-ONE-RING. We specialize in customizable communications solutions for companies across Georgia and Texas and will be happy to support your needs.


Sam Mountstephens

Tags: voice, VoIP, hosted pbx

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