28. What is a PBX? A PBX is a Private Branch Exchange. A PBX is a small telephone switch owned by a company or organization. Let's say your company has a thousand employees. Without a PBX, you would need a thousand phone lines. However, only 10% of your employees are talking on the phone at one time. What if you had a computer that automatically found an outside line every time one of your employees picked up the telephone. With this type of system, you could get by with only paying for one hundred phone lines. This is a PBX.