A Hosted PBX is a PBX that sits in the telephone network provider's central office or data center rather than on your premise. Rather than purchasing and maintaining your own telephone system or PBX, you can simply pay a monthly service fee and get similar features.
The legacy version of this is known as Centrex. The modern version is known as hosted VoIP. It's the same concept only hosted VoIP utilizes a server and a data network rather than telephone switch and the traditional voice network.
AT&T is always a good option but, I'm kind of biased
Mike
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