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How Does Hosted PBX Work?


A quick-guide to hosted PBX and how the main system works, in simple and easy to understand terms. The replacement technology for traditional phone systems.

Hosted PBX System (HPBX)

A hosted PBX system is essentially a software program that delivers PBX functionality over the internet. The software sits on a cluster of servers located in a data centre. The software can manage multiple individual PBX systems, and each one is set up as a separate user. That way, specific PBX configurations can be set and managed.

Business VoIP SIP Trunks

There are two parts of providing a hosted PBX system, the actual PBX functionality and the ability to make and receive calls. The HPBX software integrates with business VoIP using SIP trunks, this enables the system to make and receive calls over the internet. SIP trunks are essentially telephone call lines which connect to the PSTN (Public Switched Telephone Network) via a gateway. The combination of both delivers full phone system functionality.

IP Phones

Most businesses use the equivalent of traditional telephone handsets as the main PBX extension devices. IP (Internet Protocol) phones are used to connect to the HPBX system via the internet. The phones come programmed with settings that communicate with the HPBX when connected to a broadband connection. Using an individual MAC address, they automatically find and connect to the specific HPBX system. Most business IP phones have inbuilt features and functions, when combined with the HPBX system, there are more features and functions available.

What Happens When You Make an Outside Call?

When you connect a pre-programmed IP phone to a broadband connection, it communicates with the HPBX, allowing you to make and receive outside calls. It does that by being connected to the Public Switched Telephone Network (PSTN) which is the aggregate of the world’s telephone networks, all interconnected to allow phone calls between them. When you dial the number of the outside call, the HPBX automatically recognises it’s an outside call and passes it via the PSTN network to the destination, which can be a landline or a mobile number.

What Happens When You Make an Internal Call?

Every hosted PBX extension has a specific number. This number is allocated to an individual device identifier, whether an IP phone, a SoftPhone or a Mobile App. When using an IP phone, the identifier is the MAC address of the specific handset. When you make a call to another extension using the extension number, the call connects with the HPBX system which then routes it directly to the dialled extension. Being an internal call, it doesn’t pass through the PSTN network, that’s why there is no cost attached.

How Does the System Receive and Manage Outside Calls?

To receive outside calls, you need to have at least one landline number attached to the system. When someone calls that number, the hosted PBX system accepts it, then routes it to the nominated extension or a range of extensions, which can ring simultaneously. Once the call is answered, it’s delivered to that extension.

A hosted PBX system delivers functionality unmatched by on-premise PBX systems. It will also ensure your business gains the flexibility required in today's fast paced environment. Reduce costs with no telephone line rental, cheaper calls and virtually no maintenance.

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Reduce Costs and Gain Superior Functionality with Hosted PBX


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