Also known as a PBX, Unified Communications System or business phone system, a PBX acts as the central switching system for phone calls within a business. IP PBX systems handle internal traffic between stations and act as the gatekeeper to the outside world.
A traditional PBX is made up of two key elements: lines and stations. The lines, sometimes called trunks, are connections to the global public switched telephony network (PSTN) by way of a telephone company. Stations are simply telephones or other endpoint devices like fax machines, modems and credit card terminals.