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A virtual PBX is a hosted service whereby a company's phone operations reside in an external center, yet the phone is answered in a manner that clients and callers are unaware of the remote nature of this service. Examples include the automatic answering of a company's 800 number with an IVR that prompts the caller for the department or extension of an individual. When this information is obtained, the virtual PBX transfers the caller to this individual via a remote connection or dial out." Two main types of virtual PBX service is the vPBX VoIP and the PBXi VoIP.

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