PBX Phone System Cost: Everything You Need To Know

Senior Writer: Supriya Bajaj

Published : January 8, 2024

A PBX (Private Branch Exchange) phone system serves as a pivotal infrastructure, facilitating seamless management of calls for enterprises and also empowers businesses to streamline their operations and enhance customer interactions through robust call management features and functionalities.

Notably, according to a report by Analytics Market Research, the global IP PBX market, which was USD 20.19 billion in 2022, is projected to reach a robust growth to USD 85.14 billion by 2031. The ascending market size highlights the escalating demand for sophisticated PBX solutions driven by businesses’ imperative need for streamlined and enhanced communication frameworks.

What Is a PBX Phone System?

A PBX (Private Branch Exchange) phone system serves as an internal communication network within organizations. It manages incoming and outgoing phone calls, directing them to specific extensions or departments.

Essentially, it’s a centralized system that allows users within a company to communicate internally and externally via shared phone lines. PBX systems offer features like call routing, voicemail, conferencing, and more, enhancing communication efficiency.

They can be traditional hardware-based systems or modern cloud-based solutions, both aimed at streamlining and optimizing business communications while providing scalability and advanced functionalities.

Things To Consider for a PBX Phone System

PBX phone system serves the company’s current needs while remaining flexible enough to accommodate future growth. When choosing a PBX system, make sure to consider these factors to optimize communication, improve productivity, and support long-term objectives.

1. Scalability and Flexibility

A critical factor in choosing a PBX system is its scalability to accommodate business growth. Ensure the system can expand seamlessly with the company’s needs, allowing for additional lines, extensions, and features as the business expands. Flexibility is also key; the system should adapt to changes in call volume, seasonal fluctuations, and evolving communication requirements without compromising efficiency.

2. Feature Set and Customization

Evaluate the features offered by the PBX system and how well they align with business needs. Standard features like call forwarding, voicemail, auto-attendant, conferencing, and mobile integration are essential. Customization options are equally crucial; the ability to tailor settings, create personalized greetings, and modify call routing enhances the system’s usability and aligns it more closely with specific operational requirements.

3. Integration Capabilities

Consider the system’s compatibility and integration potential with other business tools and software. Seamless integration with CRM systems, helpdesk software, or collaboration platforms like Microsoft Teams or Slack can significantly improve productivity by enabling smoother data sharing, call tracking, and unified communication across various platforms.

4. Security and Reliability

Security measures are paramount when selecting a PBX system. Ensure the system implements robust security protocols to safeguard against potential threats like unauthorized access, data breaches, or service interruptions. Additionally, assess the system’s reliability by examining its uptime, redundancy features, and disaster recovery plans to guarantee uninterrupted communication even during unforeseen events or network issues.

PBX Phone System Prices

The PBX system price structure includes not only the initial setup but also ongoing expenses, which encompass maintenance, upgrades, and incorporation of additional features to enhance communication capabilities.

The price range overview of PBX Phone systems:

1. Cloud-Based PBX: Cloud PBX solutions typically range from $20 to $50 per user per month, offering flexible subscription-based models tailored to business needs.
2. On-Premise PBX: For on-premise systems, hardware costs vary widely, ranging between $1,000 to $5,000, and entail additional expenses for maintenance and support.

Businesses face the essential task of assessing their requirements comprehensively. Factors like scalability and the long-term cost implications of hosted PBX pricing need thorough evaluation before making an informed decision.

Comparing quotes from various providers, understanding contract terms, and considering potential future expansions or additional feature requirements become vital in aligning the chosen phone system with the organization’s budget and communication necessities.

You May Also Read : Top 10 Free PBX Open Source Software in 2024

Other Factors Influencing PBX Phone System Cost

Various factors impact the cost and these elements collectively influence the overall expenditure, extending beyond initial setup costs and shaping the total ownership expenses.

Let’s look at some of the key factors affecting PBX phone system cost

1. Customization and Integration

Tailoring a PBX phone system to match specific business needs incurs additional costs. Customizations often involve integrating the system with existing software or creating unique features, which can demand specialized development work and result in higher cloud pbx pricing.

2. International Calling Rates

When relying on a PBX system for international calls, it’s imperative to consider the rates set by your service provider for long-distance connections. Providers often impose differing rates based on countries, significantly affecting overall communication expenses for businesses leveraging the PBX system for international conversations.

3. Add-On Features and Modules

PBX systems often offer additional features beyond basic call management, such as call recording, advanced analytics, CRM integration, and mobile applications. Each extra feature or module added to the system may come at an additional cost, influencing the overall hosted PBX pricing structure.

4. Maintenance and Support Contracts

Ongoing maintenance, updates, and technical support play a crucial role in the smooth functioning of a PBX phone system. Some providers include these services in their packages, while others charge separately, affecting the total cost of ownership over time.

5. Training and Implementation Costs

Deploying a new PBX phone system might require employee training to ensure efficient utilization. Training programs, manuals, and implementation procedures can add to the overall expenses of adopting the system within an organization. Factors such as the complexity of the system and the scale of deployment can impact these costs.

You May Also Read : Difference Between Traditional PBX vs VOIP vs IP PBX

5 Best PBX Phone Systems

Here are five leading PBX systems known for their diverse features, scalability, reliability, and ability to cater to different business sizes and needs. These systems offer a range of functionalities, from cloud-based flexibility to robust collaboration tools, ensuring seamless and efficient communication within organizations.

1. CallHippo

CallHippo offers a user-friendly virtual PBX phone system for growing teams. Its intuitive interface simplifies communication management, facilitating seamless connections across global networks. Noteworthy for robust CRM integration and customizable workflows, CallHippo optimizes operations, enhancing productivity within virtual PBX systems.

Key Features

• Global connect
• Call barging
• Smart switch
• Call routing
• Call queuing

Pricing

• Starter – $18 Per user/Month
• Professional – $30 Per user/Month
• Ultimate – $42 Per user/Month

*Pricing as of 11-06-2024.

2. 3CX

3CX stands out with its virtual PBX system, offering unified communications and comprehensive collaboration tools. Its robust platform integrates mobile compatibility and web conferencing, empowering businesses with seamless connectivity and efficient communication channels. The platform’s adaptability and extensive features cater to diverse business needs, offering a sophisticated phone system that enhances collaboration and fosters streamlined communication across various channels.

Key Features

• Call parking
• Auto attendant
• Multi-level IVR
• Voicemail transcription

Pricing

• 3CX Free – $0 forever (up to 10 users)
• 3CX SMB – $175 annually (per system, not user)
• 3CX Pro – $145 annually (per system, not user)
• 3CX ENT – $180 annually (per system, not user)

3. RingCentral

RingCentral boasts an all-encompassing suite, integrating messaging, video conferencing, and collaborative tools within its hosted PBX phone system. Its emphasis on comprehensive communication solutions and seamless integration empowers businesses with a unified platform for efficient collaboration and enhanced productivity. The hosted PBX system ensures a versatile communication framework, enabling businesses to streamline operations and facilitate seamless collaboration for improved productivity.

Key Features

• Visual voicemail
• Voicemail to email
• Vanity numbers
• Multiway conference call

Pricing

• Core – $20 per user per month
• Advanced – $25 per user per month
• Ultra – $35 per user per month

4. Nextiva

Nextiva stands as a robust hosted PBX phone system provider, focusing on customer service tools, analytics, and a wide array of add-on features. Its user-friendly interface, coupled with analytics-driven insights, ensures efficient communication management and empowers businesses with comprehensive tools for enhanced productivity.

Key Features

• Call forwarding
• Call queuing
• Advance call routing
• Call analytics

Pricing

• Essential – $18.95 per user per month
• Professional – $22.95 per user per month
• Enterprise – $32.95 per user per month

5. Ooma

Ooma offers a budget-friendly PBX phone system solution emphasizing essential communication features for business phones such as call routing, voicemail, and conferencing. While focusing on cost-efficiency, it ensures reliable service delivery and simplified communication setups for businesses aiming for essential yet reliable communication tools. Ooma features list extends to all the classical features of traditional PBX systems plus advanced features made possible by voip services.

Key Features

• Call routing
• Voicemail
• Conferencing
• Call forwarding

Pricing

• Ooma telo white – $99.99
• Ooma telo air – $129.99
• Oomoa telo LTE – $19.99 per month + taxes and Ooma telo LTE ($129.99)

You May Also Read : What Is A PBX System? Definition, Features And Benefits

Conclusion

In summary, this guide provides a comprehensive understanding of PBX system, elucidating their core functionality and the factors influencing their costs. Highlighting key considerations like system types, hosted PBX pricing breakdowns, and the impact of customization and additional features, it aims to equip businesses with informed decision-making capabilities. 

By exploring top PBX systems and their features while considering diverse cost elements such as international rates, ongoing maintenance costs, and compatibility with IP phones, this guide aids businesses in aligning their communication infrastructure needs with budgetary constraints effectively.

FAQs

1. How much does a cloud PBX system cost?

Virtual PBX pricing ranges from $20 to $50 per user per month, depending on features and service provider.

2. How much does a PBX server cost?

Traditional PBX systems or On-premise PBX costs can vary between $1,000 to $5,000 for hardware, plus installation and ongoing maintenance fees.

3. Is VoIP better than PBX?

VoIP operates within PBX systems and offers cost-efficiency, scalability, and flexibility compared to traditional PBX setups.

4. Do people still use PBX?

Yes, many businesses, especially larger enterprises, still rely on PBX systems due to their ability to manage internal and external communications efficiently over traditional phone lines.

Updated : June 13, 2024

Supriya Bajaj

Supriya Bajaj is a senior content developer with immense experience in the VoIP telephony domain. With a deep knowledge of VoIP systems and emerging technologies in the field, she provides insightful and targeted content. Known for simplifying complex topics and her thought-leadership articles, Supriya delivers actionable content for both technical and non-technical audiences.

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