What is SIP Trunking and how can it benefit businesses?  

Discover the best way to utilise SIP Trunking with our expert guide.

What is SIP Trunking and how can it benefit businesses? 

SIP trunking is changing the way businesses communicate. The increase in instant chat, video calls and voice calls during the pandemic demonstrates the benefits of utilising an internet-powered phone system; reliability, quality and fluency of communication are all optimised. The fluid maintenance of those business that have adopted SIP trunking during this difficult commercial period has bolstered demand for cloud-based communication services. Transparency Market Research predict that SIP trunking services could grow worldwide at a 13% annual rate until 2030. This is indicative of the vast implementation of what is becoming a crucial communication protocol for SME’s and large businesses. It is also officially recommended as a public sector tech solution by the UK government’s Digital Marketplace.

What is SIP trunking and how does it work?

Despite its growing prevalence, we are still, understandably, asked ‘what is SIP trunking?’ by those considering the switch, but unsure of its processes and value. In simple terms, Session Initiation Protocol (SIP) is an application layer protocol that uses internet connections instead of phone lines. The term ‘trunking’ refers to the banks of phone lines that connect to a telephone network. Only a server or an existing PBX (Private Branch Exchange) is required to switch to cloud-based outbound and inbound calling. Lower costs and ease of scalability are the immediate advantages. Since SIP trunking is cloud-based, business can additionally benefit from a range of call handling and management features, combined with apps, advanced analytics and web interfaces. SIP trunking ensures business continuity. With the increase in WFH (working from home), the ability to reconfigure your SIP trunking for WFH is a possibility, but the critical advantage supplied is robust protection against disruption. The US government agency FEMA (Federal Emergency Management Agency) discovered that 40% of small companies fail to reopen when faced with unplanned disruption. A SIP trunk phone system is resilient to unforeseen disorder. You’ll be able to keep your business running and, if disruptive events are likely to increase the load of your calls – for e.g., a PPE (protective equipment) company during the pandemic – you can balance the volume of calls between sites during peak hours.

What is the difference between SIP trunking and VoIP?

VoIP (Voice over Internet Protocol) and SIP are often used interchangeably but are not the same thing. Broadly speaking, VoIP refers to any phone calls made using the internet. This includes SIP trunk phone systems. SIP is best understood as a specific type of protocol that enables the use of VoIP.

SIP trunking vs. VoIP

VoIP allows calls either through the internet or an internal network. It requires a computer to run its software. In comparison, a SIP trunk can transfer data packs over any network – physical (ISDN), internet or VPN (Virtual Private Network) and can operate separately from a computer. VoIP calls are controlled from a separate location, using a separate provider to control all call traffic. A SIP trunking phone system, however, is part of the network you run your calls on. The protocol is stored in your on-site phone exchange or providers equipment. And if you handle sensitive data, you can directly connect to your network service provider for added security.

Why do we use SIP trunking?

Traditional phone systems are facing obsoletion. A system that allows you to manage calls without complexity and enable your employees to maximise productivity will become the industry standard across most sectors in the short term. That system is SIP trunking. Its flexibility, reliability and practicality mean call setup, control and management is an optimised process. A recent report by technology research group Gartner revealed that SIP trunking phone systems can cut telecom expenses by 50%. A future-proof communication network that reduces costs was a market inevitability, and SIP trunking can supply an almost immediate return on investment.

What is SIP in PBX?

A PBX (Private Branch Exchange) is the phone system that connects individual extensions to external lines and mobile networks. When the PBX is SIP enabled, the PBX can connect to the internet to make calls. It takes little more than a SIP trunk service provider to enable a cloud-based PBX system, transforming your existing network into a SIP Trunk phone system.

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