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IP PBX & VOIP are widely used terms in businesses. These technological solutions simplify the working of businesses by allowing the brands to interact both internally and externally on a real-time basis.

These terms, however, are often misunderstood by people. Some say that both are the same, whereas, others say that the two differ from each other. Let’s understand more about these terms followed by how CARE can provide you a strong base for the smooth run of your business.

What is IP PBX & VOIP?

IP PBX and VOIP is a term used interchangeably in the IT industry which can be rather confusing. IP PBX refers to the telephony system while VOIP refers to the underlying technology itself.

IP PBX which stands for Internet Protocol Private Branch Exchange is a type of enterprise telephone system where calls between users on local lines are switched using the fast data networks which is the IP part of the system.

VOIP which stands for Voice Over the Internet Protocol refers to the actual technology that allows telecommunications to be made via a data network.

Available Features of IP PBX:

  • Auto-Attendant
  • Call Conference
  • Call Recording
  • Call Transfer
  • Call Queue
  • Announcements
  • Ring Groups
  • Time based routing
  • MOH (Music on Hold)
  • Follow Me
  • Voice Mail

How do IP PBX & VOIP works?

The below diagram illustrates how an IP PBX system functions:

IP PBX Systems Singapore


  1. IP PBX acts as a centre of the system. The system is connected to both the internal and external stations through the trunks.
  2. The system has a database which contains phone numbers and directories of the users to connect the call.
  3. IP PBX utilizes this to connect with the PSTN (Public Switched Telephone Network) through the use of a VOIP gateway.

Earlier, in the PBX systems (Private Branch Exchange), the call is first connected to the operator who then connects the call to the desired department with the help of appropriate extensions. Whereas in the case of VOIP, an IP PBX utilizes an electronic system instead to connect with a particular person.

The below diagram illustrates how a VOIP system functions:

how a VOIP system function

  1. At the first step, the Analog calls are converted to the digital data set using the Internet.
  2. At the second stage, the digital data set is converted in the form of packets.

  3. Lastly, at the final stage, the packets are converted back to the telephone signal.

Benefits of IP PBX system:

The IP PBX system is renowned for offering the following list of benefits to businesses:

  1. Cost: IP PBX systems can lower monthly operating costs despite the large number of users it can support. After support and maintenance are budget friendly as well.
  2. Mobility: Since IP PBX are IP based, it does not restrict users on the physical location. The phones can be relocated to a different connection. 
  3. User Friendly: IP PBX does not require in depth technical knowledge to use and maintain. Hence, companies will not require having an IT team or sophisticated training to use and update the systems.
  4. Extensions: IP PBX systems have the flexibility to incorporate remote and branch extension. All that is required is another IP phone and an internet connection.

Benefits of the VOIP system:

The benefits of VOIP system include:

  1. Low Cost: Companies need not pay extra for the equipment cost. They just need to pay a fixed monthly subscription for the local and international calls.
  2. Flexibility: One can receive calls from any remote location as there is no need to set up the traditional wiring system. The calls can be diverted to mobile phones, PCs, Desktop, and other devices.
  3. Sound Quality: Although sound quality relies on good internet connectivity, the current popular choice of fibre optic cables for commercial use will eliminate any quality issues.

Contact CARE IT Team Now to Transform your Phone System

IP PBX & VOIP service in Singapore

Our CARE IT Team has got vast experience in providing and implementing IP PBX and VOIP solutions to many SMEs with excellent results. We aim to provide our clients with valuable solutions that ensure smooth workflow of the operations. CARE believes in delivering quality and value to your organization by turning your ordinary business processes into seamless experiences.

To integrate the right IP PBX and VOIP solutions to business, contact us now to find out on the latest promotional prices.

IP PBX & VOIP Frequently Asked Questions

+Is VoIP better suited for my business than landline?

VoIP provides more functions than a landline by letting you use your mobile phone, computer or other devices that have a stable Internet connection. Business VoIP providers help companies to access useful features, such as video conferencing, voicemail forwarding, voicemail-to-text transcriptions and more for their business needs. Landline, on the other hand, is restricted in terms of physical location and functionality.

+Do I need PBX for VoIP services?

IP PBX system is not required when using VoIP for your business. In fact, your business VoIP providers can provide most PBX solutions and features without the on-site PBX hardware.