A KSU is a Key Service Unit. It services Key (multi button) Telephones, which usually pick up all, or many of the same telephone lines. There is no switching capability within a KSU.
A PBX is a switchboard (Private Branch eXchange). The original PBXs were cord (plug) boards where the switching was done by the operator. Later machines were PABXs (Private AUTOMATIC Branch eXchange) where the switching was automatic. Early models were mechanical, later they were electronic, recently they became digital.
In short a KSU allows many phones to access the same line or lines and share them. A PBX will bring both outside lines (trunks) and telephone extensions (sets) in and allow the connection between the two via a switching matrix.
I don't think I explained this terribly well. If I didn't, please advise me and I'll try to do better tomorrow, when I'm not so tired.
Sam
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