A private automatic branch exchange (PABX) is an automatic telephone switching system within a private enterprise. Originally, such systems – called private branch exchanges (PBX) – required the use of a live operator. Since almost all private branch exchanges today are automatic, the abbreviation “PBX” usually implies a “PABX.”
Each PABX-connected station, such as a telephone set, a fax machine, or a computer modem, is often referred to as an extension and has a designated extension telephone number that may or may not be mapped automatically to the numbering plan of the central office and the telephone number block allocated to the PABX.
Initially, the primary advantage of a PBX was the cost savings for internal phone calls: handling the circuit switching locally reduced charges for telephone service via the central office lines. As PBX systems gained popularity, they were equipped with services that were not available in the public network, such as hunt groups, call forwarding, and extension dialing. In the 1960s a simulated PBX known as Centrex provided similar features from the central telephone exchang
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