If you’re shopping for a phone system, you’ve probably run into the term “hosted PBX” and wondered what it means — and how it compares to the traditional phone service you’ve used for years. Let’s lay it out plainly.

Traditional Phone Lines

This is what most of us grew up with. A pair of copper wires runs from the phone company’s central office to your building. Each line can handle one call at a time. If you want three simultaneous calls, you need three lines. You get a dial tone, you make calls, and at the end of the month, you get a bill with a bunch of line items you don’t fully understand.