SIP Trunking and VoIP

By Brian Boguhn
Updated: February 02, 2011

Many businesses have converted to using voice over Internet protocol (VoIP)—and those who haven’t, will eventually. A VoIP system can offer businesses significant savings on their communications costs while giving them high-tech advantages.

VoIP systems are complex systems with a multitude of options. VoIP systems are scalable depending on the size of the business and its growth, which is one of the reasons these solutions are popular. The term VoIP is an all-encompassing term referring to any phone system that is sent over the Internet and not a landline from a phone company. Within VoIP there are several technologies, including session initiation protocol (SIP) Trunking.

SIP Trunking

SIP Trunking is a common VoIP technology offered by Internet telephony service providers (ITSP) that allows companies to send their telephone calls over the same line as their Internet. This is popular for obvious reasons, mainly because companies do not need to install additional lines or upgrade their hardware. SIP Trunking can be routed through the company’s existing Internet lines and current hardware, with limited new equipment.

In the most simple explanation of the technology behind SIP Trunking is that it blends the phone line data with the Internet data packets and sends them across a single line.

The popularity of SIP Trunking is increasing, as it can be installed through existing Internet lines and with limited hardware purchases or upgrades.

The only additional piece of hardware needed is an SIP-trunking device. There is significant savings that will more than cover the initial outlay for the device, as you no longer have the monthly costs of phone lines or additional Internet lines.

The reason many companies are switching to SIP Trunking technology is to:

  • Reduced monthly expenses, as you only need one business-level Internet line.
  • No need to purchase and maintain expensive gateway devices, PRI connections or similar hardware.
  • Take advantage of low cost VoIP services.
  • Ability to use high-tech VoIP features.
  • Improvement of employee communications and capabilities.
  • Can be implemented near the end of the life cycle of current hardware to minimize costs.
  • Scalability to scale-up or scale-down the solution as necessary, including the ability to add and move locations.
  • Equipment standardization improving IT functioning.

Implementation Costs

There are associated costs to implementing an SIP Trunking strategy as companies need to acquire an IP PBX, IP phones, firewalls capable of supporting SIP, and soft clients. Despite these costs most companies still see a ROI within six months from the money saved on long distance costs and other phone-based service providers.

Featured Research
  • The New SMB Phone Systems Comparison Guide

    Does your small or medium-size business need a new phone system? Then you're in luck! Our new, updated comparison guide helps you cut through superfluous information and narrow down your list of solution providers. Get the latest data on phone system features, pricing, and performance metrics in an easy-to-use format. more

  • How UC Can Help Your Business Survive the Holidays

    The holiday season is filled with frenzy and excitement for businesses and consumers alike. Consumers prepare gift lists, compare brands and prices, and begin shopping with a vigor that is not present most other times of the year. For many businesses, the holiday season accounts for a large profit bump at the end of each year, and companies strive to exceed their goals and keep customers happy during this rush late in the year. more

  • [Infographic] Switching Phone Systems

    There are a lot of possible reasons you might want to switch to a new phone system. The old one might cost too much or be too troublesome to operate and maintain. It might not be flexible enough. It might not be reliable enough. Or it just might not have the kinds of features and capabilities that you need in today’s competitive business climate. more

  • Business VoIP on a Budget

    Voice over Internet Protocol (VoIP) phone systems represent the next innovation of telephone connection and communication by making it possible to conduct calls over a broadband internet connection, rather than an analog phone line. more

  • [Infographic] The Advantages of Unified Communications

    Did you know that according to 8x8, the tangible ROI of a unified communications solution for a 10,000-person enterprise is approximately $15.5 million? This isn't the only way unified communications can improve your business. more