PABX vs. IP Phone System: Which is better?

Talking about the telephone system, you may be often confused with some terms. Some of them are PABX and IP telephone systems. Yes, in many cases, you even need to choose one of them. Moreover, it is when you are intending to install a system with help from a telecommunication company. So that you will not feel confused, some explanations about the 2 systems will be presented. Check them out.

PABX System

PABX stands for Private Automatic Branch Exchange. It refers to a kind of device that functions to centralize the phone in a certain location. The system will manage all calls that enter and then continue them to the destined phone numbers. It is by only pushing the phone number.

The PABX system has some connectors that are directed to a switchboard. Because, the “branch” here refers to the number of connections that are connected to PABX. The PABX tool is a sophisticated technology since it can be used as a telephone, modem, and fax machine. It can also be used for an internal communication tool by employees.

The PABX system works with modem principles. Sure, it is because the tool is basically a modem that is functioned to control the central station. Every time there is a new call coming, the call will be routed through the station control. In the PABX system, there have been certain codes for every phone number in the area or for each extension. The code enables the phone number to be directed more easily and accurately.

What are the benefits of using PABX? First of all, PABX can be programmed so that the automatic greeting will appear every time there is a new call coming. For the fax, you can program the connection through the station control to the fax machine. It is even good for various destination numbers of the fax.

Second, a modern PABX can be programmed using a computer system to track calls and dials. The system can be managed if you want to avoid calls you want them to enter. Third, the system is good for an auto attendant. It is a feature that directs the caller to enter a certain destination automatically. This feature is recommended for a big-scale business. Meanwhile, PABX system, in general, is good for the office telephone system.

IP Phones System

IP phones system consists of one or more SIP phone, server, and VOIP Gateway that is connected to the PSTN line that has been available. The function of this server is similar to how a proxy server works; the SIP client whether in the form of software and the Smartphone-based hardware.

So, if they want to make a call, they ask the IP system to do it. The system has a list of many Smartphones along with the owners and phone numbers. This way, the system can make internal connections or the external routes whether it is through the VOIP gateway and VOIP server.

There are some benefits of using an IP phone system. First, it is easier to install and configure rather than installing and configuring the proprietary phone system. Second, you can also manage it well and more easily because the Ip system uses web-based GUI interface. Third, you can save more money significantly using the VOIP provider. You don’t need to use a phone wire.

Fourth, you can avoid being dependent on a vendor or IP brand that is based on the SIP open standard. This thing can improve the service to your customers and it is easier to use. Fifth, the IP phone system can be integrated with the CRM app to improve the performance of your business performance.

Additionally, IP or IP PBX stands for the Internet {Protocol Private Branch Exchange. It means that the system is entirely using IP technology. Therefore, all the calls are sent in the form of data packages. It also gives more flexibility in developing the phone system that is expected by many companies. One of the famous products of IP is the Yeastar S Series.


It is quite difficult to describe which is better between PABX and IP. It is since each of them has its own benefits and lacks. In general, IP PBX is indeed more recommended for more modern and sophisticated features. But it doesn’t mean that the PABX system should be left behind. This system is still good for certain areas, for example; it is offices and public places like hospitals and others. So, before choosing one of them, make sure to learn more about your needs first.

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