WHAT IS THE DIFFERENCE BETWEEN PSTN VS.

PBX (WHICH ONE DO YOU

NEED)

PSTN vs. PBX is two types of telephone networks. They both provide an internal telephone
network that connects users within a business or organization and the outside world.
However, their method of connecting users differs, as PBXs connect to a private branch
exchange (PBX).

A PBX is a central office that provides voice, data, and fax services for several branch offices
in a single location. It also allows for shared lines between multiple users. One or more
organizations may use a PBX to save money on costs associated with having different lines
for each user.

A global network of interconnected voice-oriented public telephone systems is government-

owned and privately-owned. PSTN, or Plain Old Telephone Service, is another name for it
(POTS). It is the combination of telephone networks that use circuit switching. Except for the
last link from the central-local telephone office to the user, the PSTN is now virtually entirely
digital. For quick and unfettered communication within corporations.
What is PSTN? – Learn About Public Switched Telephone Network
PSTN stands for Public Switched Telephone Network. It has been used as a conventional
circuit-switched telephone network since the late 1800s. This method has provided families
and companies with dependable ways to connect with everyone on the planet for years by
using underground copper lines. The phones go by several names, including fixed-line
telephones, landlines, and plain old telephone service.

PSTN appears to be a single, sizable network of interconnected phone lines. Switches,

circuits, signaling equipment, and telephones make up the actual PSTN. Different networks
inside the PSTN are owned and run by numerous different firms. Linking the users who are
calling and being called is the primary function of a PSTN switch. The call remains local if
both users are physically connected to the same PSTN switch.

When you make a call, your call moves through the PSTN. When you dial a phone number,
your call moves via the network to reach its destination. As a result, two phones get linked
together—the one calling and the one being called.

• Think about what happens when you dial a number from your phone to
comprehend how the PSTN functions fully.
• It converts sound waves into electrical impulses telephone set. The signals are
then coded and sent to a terminal.
• The terminal collects these electrical impulses, which then sends them to the
primary office.
 • The central office sends the calls through fiber optic cables as electrical impulses.
Finally, these messages are sent as light pulses over fiber optic cables to their final
locations.
• A tandem office receives your call. When it reaches the correct office, it’s turned
into an electrical signal and routed to another terminal. At this point, it’s sent to
another tandem office until it reaches its final destination!

What is a PBX Line, and How Can I Get One For My Business
Private branch exchanges (PBXs) are one phone system that allows a business to have its
local exchange, which means it can route all calls internally. A PBX allows you to save on
the cost of having a separate line for each user.

When you have a PBX, your business can enjoy the following services: voice mail, phone
forwarding, call conferencing, auto-attendant, and more. A PBX’s primary function is to
eliminate the expense of each user having their line to the phone company’s headquarters.

The local exchange of the user is connected to a PBX. While all internal calls are routed via
the PBX, it directs outgoing calls to a local exchange. Since a PBX often consists of software
and hardware, so the price tag will be high. It is built with routers, switches, hubs, phone
adapters, and telephone sets. It is comparable to setting up your switchboard where your PBX
controls the switches inside.

Private Branch Exchange, or PBX, is technology companies use to handle phone calls. The
term “line” or “private line” is also often used. The tools used in a PBX vary depending on
the system complexity, such as whether it is a traditional PBX linked to copper telephone
landlines. Whether it supports a combination of digital and analog lines, whether it uses voice
over IP clouded at the enterprise, or whether it is a cloud-based PBX system.

Since they are easier to use, most businesses use PBX phone systems to manage calls. A
PBX, however, is expensive to construct and operate. The actual cost varies based on the
complexity of the PBX and the number of features you desire to have.
What Is The Distinction Between PSTN vs. PBX? You Can Find them Here.
The distinction between a PSTN vs. PBX switch is covered in this section:

• The PSTN vs. PBX are two different types of voice switching systems. The PSTN
is a telephone network that supports residential telephones, and the PBX is a
switch system that supports business telephones. In addition, the scale of 64 kbps
circuits used by the PSTN vs. PBX switch systems is different. A PBX can only
accommodate a few thousand phones, but a PSTN can handle hundreds of
thousands.
• Within a company, a PBX supports user telephones. Residential phone service is a
PSTN switch’s primary function.
• PBX suppliers usually use proprietary protocols for their PBXs to connect and
transparently convey extra functionality over their voice network. Additionally,
you may only connect the vendor’s PBX to the vendor’s phones. Finally, due to
vendor restrictions, corporate networks within enterprises tend to centralize
around a single PBX brand.
• A PBX is a corporate telephone network with capabilities like call transfer, call
hold, call forward, conference calls, follow me, music on hold, voicemail, and call
history. This process makes PSTN vs. PBX Traditional PSTN switches cannot
access the majority of these functionalities.
• Although PBXs are primarily utilized in businesses, PSTN switches connect
residential and commercial customers. In addition, PBXs are often housed in
corporate buildings, whereas PSTN switches are found in the central office and
are used to establish the PSTN network.
 • PBXs are typically used to connect the PSTN to a private branch exchange (PBX)
switch. PBXs are used for end-to-end digital transmission, use PCM switching
technology, and support both analog and proprietary digital telephones. It is an
intelligent device that links the PSTN vs. PBX via one or more E1 or T1 digital
circuits. It supports end-to-end digital transmission, deploys PCM switching
technology, and supports analog and proprietary digital telephones.
• A PBX is an extension of a telephone system that provides call processing
functions in addition to basic voice compression. The main difference between a
traditional telephone system and a PBX is that PBXs support an end-to-end digital
transmission and use PCM switching technology instead of dial tone signaling
systems like analog signaling systems or DTMF signaling systems.
The Advantages of Private Branch Exchange (PBX)
A private branch exchange (PBX) is a telephone switch that provides users with private or
local telephone service. PBXs are used in businesses and government agencies to provide
end-to-end digital transmission, use PCM switching technology, and power both analog and
proprietary digital telephones.

PBXs are a great way to run your business. Here are the top reasons why you should consider
using a PBX:

• You don’t have to be concerned about controlling your phone lines—your local
administrator can easily add new users, convert features, or move users to new
locations without contacting the carrier.
• Local calls between PBX users or groups of PBXs are free.
• Most PBXs have fewer than five external lines at any given time, so you don’t
need as many PSTN lines as you might think.
Conclusion
Ultimately, which type of telephone network you choose will depend on your specific needs.
However, there is no one-size-fits-all solution, and PSTN vs. PBX systems have pros and
cons. While selecting the best solution for you, consult someone with experience with both.
A prospective vendor may give you a better idea of the costs associated with each system and
the comparison in functionality. With EPC Group’s team of certified Microsoft Teams
consultants, you can have the peace of mind that comes with a unified consulting solution
focused on data communications and technologies. Our consultants have deployed Microsoft
Teams as unified consulting solutions for efficient audio, video, messaging, sharing, and
collaboration.