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Voice over Internet Protocol (VoIP) VoIP September 1, 2024

What Is SIP Trunking? How It Works, Benefits, & How To Get It

What is SIP Trunking & SIP Trunks?
(SIP) Session Initiation Protocol Trunking uses a data connection to establish calls to your PBX. Learn to cut calling costs with a SIP trunk.
Joe Manna
Author

Joe Manna

What is SIP Trunking & SIP Trunks?

What Is SIP Trunking?

SIP (Session Initiation Protocol) trunking is a technology that enables voice and multimedia communications over an internet protocol (IP) network instead of traditional phone lines. It uses SIP, an application-layer protocol, to establish, modify, and terminate communication sessions between two or more endpoints.

The term “trunking” refers to the consolidation of multiple communication channels or lines into a single, logical connection or “trunk.” SIP trunks provision Voice over Internet Protocol (VoIP) connectivity between an on-premises phone system and the public switched telephone network, also known as PSTN.

For instance, an office might have an existing PBX that provides office phone service. SIP trunks provide the backend connectivity so employees can reach the outside world and vice versa.

SIP trunking is an affordable option for many small businesses, but it’s not for everyone. It replaces the need for physical lines. It also lets you easily add new phone lines or modify your phone service without disruptions or the need to buy new hardware.

If you’re still unsure about SIP trunking, Jake from Nextiva gives a great explanation in this 2-minute video:

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SIP trunking technology lets companies upgrade their PBX to an all-digital phone system. SIP service providers like Nextiva are known for their flexibility and cost-effectiveness, especially for businesses with high call volumes.

One thing to know right off the bat is that SIP trunking is a more technical solution for business voice functionality. It operates similarly to HTTP, which is the very basis of browsing web pages on the internet. SIP was embraced by the open-source community and acted as a catalyst for business phone service. Also, SIP’s capabilities extend beyond phone service into broader messaging functions.

Just like you’d get a traditional phone line subscription from a landline provider, SIP trunking is provided by a SIP provider.

Ultra-reliable voice service for your PBX. Try Nextiva.

Switch to a battle-tested SIP trunk provider with superior redundancy. Trim costs and enjoy award-winning support.

An excellent SIP trunking service lets you use your existing PBX equipment to transition into an internet-powered telephone network.

That’s not all: you can also use an SIP phone as part of your unified communications system. You can synchronize all your communication channels in real time. This way, you’ll enhance productivity, collaboration, and efficiency across your company.

How Does Session Initiation Protocol (SIP) Trunking Work?

SIP trunking works as an intermediary between your business phone system and the Internet Telephony Service Provider (ITSP). The diagram below shows how calls flow from a SIP phone (VoIP) in a business to the outside world—it’s fascinating!

SIP Trunking Diagram on how SIP trunking works in a VoIP Business Phone System

SIP trunking replaces traditional phone lines with a virtual connection, allowing your business to make and receive calls using your existing internet connection. It acts as an intermediary between your on-premise phone system () and the Internet Telephony Service Provider (ITSP) that delivers your service.

Think of it this way: traditionally, businesses relied on physical phone lines to connect calls. SIP trunking bypasses these lines by converting voice calls into digital data packets that travel over your internet network. This eliminates the need for expensive installations and clunky hardware.

Transitioning to SIP trunking

Here’s what you’ll typically need to make the switch to SIP trunking:

Direct inward dialing (DID) numbers: Enhancing flexibility

Direct-inward dial (DID) numbers are a helpful feature you can use with SIP trunking. They provide a cost-effective way to assign specific phone numbers to employees or departments within your company.

SIP Trunking Diagram - SIP trunking connects existing communications hardware to the telephone network.
SIP trunking connects existing communications hardware to the telephone network.

Here’s how it works:

  • Your ITSP assigns you multiple phone numbers, each linked to a specific SIP extension within your PBX system.
  • Incoming calls with a specific DID number automatically route to the designated extension, eliminating the need for a receptionist or auto-attendant.
  • The beauty of SIP trunking with DID is the elimination of separate phone lines for each number. You only pay for the service itself, reducing infrastructure costs.

Using DID numbers with SIP trunking, you can enhance call management for various departments like customer service, sales, or even individual employees, improving overall communication efficiency.

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What Is SIP Trunking Used For?

The main role of SIP trunking is to replace PRI technology. PRI, or Primary Rate Interface, has been used for decades to deliver lines of voice and data using physical copper lines.

Essentially, it’s a bundle of analog phone lines. PRI can be costly to maintain since the hardware quickly becomes outdated.

SIP trunking uses VoIP technology. It also supports other data like instant messages and video conferencing. SIP services can significantly enhance the capability of complex PBX systems, making them more flexible and cost-effective for businesses with high call volumes.

SIP trunking is the right choice for anyone ready to move their business communication on a light budget.

This warrants a follow-up question: how will you know that your company is ready for SIP? Here are some questions to consider:

SIP Trunking & VoIP

In short, SIP trunking is used for call setup, management, and teardown. It’s flexible, reliable, and quite lightweight. This means you can focus on your business instead of the technicalities. SIP is the basis for VoIP communications, and SIP Trunking is used to provide VoIP connectivity through a PBX.

Benefits of SIP Trunking

Still unsure of the advantages of this approach to your business communications? In this section, we’re diving into the benefits of SIP.

SIP connects a variety of devices to connect individuals and businesses locally and globally through voice, video, and text. It simplifies business communication systems and makes businesses technologically competitive. Here’s how.

1) Cost savings and efficiency

With a traditional phone line, you may be paying for extra lines you aren’t using. You might also incur high charges for long-distance and international calls.

There’s also the cost of equipment maintenance. With SIP trunking, you’ll experience simplified pricing, usually charged per-user or per-minute (if you want). This comes with the extra benefit of predictability in your recurring expenses.

You get the choice between metered and unmetered SIP trunk plans. There’s a huge difference.

2) Virtual presence

SIP creates a unified virtual presence. It allows individuals and businesses to choose when and how they would like to be available.

For example, calls and messages can be forwarded to your assistant if you’re in a business meeting. They’re routed to a smartphone if you’re on a business trip.

Thanks to SIP, you’ll have centralized communication. We all have multiple ways we communicate: multiple devices at home, just as many (or more) at work, texts, video chat…The list goes on. SIP grants a user one “address” for all these devices and applications.

As a result, your interactions remain frictionless, no matter where you are.

3) Room for growth and scalability

When you’re looking to grow your company, your business needs will change. Sometimes, they’ll change at a rapid pace.

You need your technology to grow your business. With SIP trunking, you’ll combine your communications across channels and multiple offices into a single network.

Your call volume or the number of concurrent calls is likely to grow as your company grows. Technology shouldn’t stop you from doing things right.

No need for new IP infrastructure or waiting to speak to a customer service agent just to add new phone lines! With SIP trunking, you’ll be able to do all of that on your own, on demand.

4) Reliable technology

Traditional telephony service can be disrupted due to phone failures, bad weather, or a damaged telephone pole.

Luckily, SIP trunking with VoIP boasts higher reliability. This means that you can keep using your phone even in case of failure. Calls can be routed to other lines, offices, or your mobile device.

No matter what happens in the background, you can keep your business going smoothly and interruption-free.

Drawbacks of SIP trunking

While SIP trunking offers many advantages over traditional telephony services, it also has some potential drawbacks that businesses should be aware of:

Dependence on internet connectivity

SIP trunking relies on your internet connection to transmit voice data. If your internet goes down, your phone system will be inoperable. This can be a major issue for businesses that depend heavily on reliable phone communications.

How to overcome it: Implement redundant internet connections from different providers, or use a backup like 4G/5G cellular data to ensure continual internet connectivity.

Quality of Service (QoS) issues

Since voice data travels over the public internet, latency, jitter, and packet loss can degrade call quality if the internet connection is not properly optimized for real-time communications.

How to overcome it: Implement QoS prioritization policies on your network equipment to prioritize voice data. Use a dedicated internet connection for SIP trunking traffic.

VoIP QoS Illustrated Example
Routers prioritize voice traffic using QoS alongside other network demands.

Security vulnerabilities

SIP communications are transmitted as data packets, making them vulnerable to interception and hacking if not properly secured.

How to overcome it: Use encrypted SIP trunks, enable security features like firewall protections, authentication, and data encryption, and implement robust cybersecurity practices.

Power dependency

Unlike traditional analog phones that derive power from the telephone line, SIP phone systems require power to operate.

How to overcome it: Deploy a backup battery or generator for SIP phones. Consider keeping analog phone lines for emergency use.

Being aware of these potential drawbacks and implementing appropriate solutions helps businesses mitigate the risks and fully enjoy the benefits of SIP trunking.

Choosing the Right SIP Trunking Solution

Selecting the right SIP trunking solution is crucial for ensuring reliable and high-quality voice communications. When evaluating potential SIP providers, businesses should consider several key factors to make an informed decision.

First and foremost, cost is a significant consideration. Look for a SIP provider that offers competitive pricing structures through metered or unmetered plans. Quality of service is equally important; ensure the provider has a reputation for delivering consistent and clear voice calls.

Scalability is another critical factor. Your chosen SIP trunking solution should easily accommodate your business’s growth, allowing you to add or remove SIP channels as needed. Advanced features such as number porting, call routing, and real-time analytics can enhance your cloud communication system’s efficiency and effectiveness.

Lastly, don’t overlook the importance of customer support and security protocols. A reputable SIP provider should offer robust customer support to assist with any issues and implement stringent security measures to protect your communications from potential threats.

PRI vs. SIP Trunking vs. VoIP

While PRI, SIP Trunking, and VoIP are related technologies used in voice communications, they differ in their capabilities and implementation. Here’s a side-by-side comparison:

FeaturePRISIP TrunkingVoIP
TechnologyTraditional phone linesInternet Protocol (IP)Internet Protocol (IP)
ScalabilityLimited, requires additional physical linesHighly scalable, no physical line limitationsHighly scalable, no physical line limitations
CostHigher costs for maintenance and scalingLower costs, no physical line expensesLower costs, no physical line expenses
MobilityLimited to physical locationsSupports remote workers and mobilitySupports remote workers and mobility
FeaturesBasic voice callingDepends on the specific protocol used (e.g., SIP)Advanced features like video conferencing, integration with business apps
FlexibilityRigid, aging technologyFlexible, adaptable to changing needsFlexible, adaptable to changing needs
Future-proofMay become obsolete as telecom providers phase out supportFuture-proof as it uses IP networksFuture-proof as it uses IP networks

For modern businesses, SIP trunking and VoIP solutions are generally more future-proof, cost-effective, and feature-rich compared to the aging PRI technology.

SIP Trunking vs. VoIP - Comparison

How To Get Started With a SIP Trunking Service

Getting started with a SIP trunking service doesn’t have to be complicated.

Adding users to your office phone system in Nextiva is easy.

Who can benefit from SIP trunking?

SIP trunking is a valuable solution for businesses of all sizes, particularly those with:

  • High call volume: SIP trunking can significantly reduce communication costs for businesses with frequent calls.
  • A need for scalability: Businesses with fluctuating call needs can easily adjust their SIP channels.
  • A desire for advanced features: SIP trunking unlocks a range of features that can improve communication efficiency.

Ultra-reliable voice service for your PBX. Try Nextiva.

Switch to a battle-tested SIP trunk provider with superior redundancy. Trim costs and enjoy award-winning support.

Transitioning to a SIP trunking service is straightforward but requires some key steps. Here’s how to get started:

  • Assess your needs: determine how many concurrent calls you need to support, decide if you want to keep your existing phone numbers, and consider any advanced calling features like auto-attendant, video conferencing, or call recording that are must-haves.
  • Choose a SIP provider: With your requirements in mind, research reputable SIP providers that can support those needs at a reasonable cost. Make sure they’re compatible with your current PBX system or offer a hosted PBX solution. Also, check their uptime guarantees and customer support offerings.
  • Prepare your network: Before making the switch, prepare your network infrastructure. Ensure your internet has enough bandwidth for VoIP calling and configure your router/firewall to allow the necessary SIP traffic. Setting up a dedicated voice VLAN or QoS rules to prioritize voice packets is recommended.
  • Port your numbers (if applicable): If you’re keeping your existing phone numbers, you’ll need to request number porting from your current provider to the new SIP provider, which can take 1-3 weeks typically.
  • Configure your system: Once the numbers are ported, configure the SIP trunk connection between your PBX and new provider, program your numbers, calling rules, auto attendant, and other settings, and thoroughly test inbound and outbound calling.
  • Train your staff: Make sure to properly train your staff on using any new phone system features and provide instructions for things like making external calls through the new system.

With our plans, we give you all of the above control and power over your cloud PBX — and more. We also have an award-winning customer service team to help you with anything you may need along the way.

Implementing SIP Trunking

Implementing SIP trunking in your business is straightforward and can yield significant benefits. The first step is to replace your traditional phone lines with SIP trunks, enabling voice and multimedia communications over your existing internet connection.

Begin by ensuring your business phone system is compatible with SIP trunking. This may involve updating your PBX system or opting for a hosted PBX solution provided by your SIP provider. Once your system is ready, configure the SIP trunking service with your Internet Telephony Service Provider (ITSP). This setup will allow your voice calls to be transmitted as digital data packets over the internet, bypassing the need for physical phone lines.

Choose and assign phone numbers inside Nextiva.

Consider implementing Quality of Service (QoS) network policies to maintain superior call quality. These policies prioritize voice data on your network, reducing latency, jitter, and packet loss. With the right SIP trunking solution and proper implementation, your business can enjoy cost savings, increased flexibility, and improved call quality.

By following these steps, you can seamlessly transition to a SIP trunking service, enhancing your business’s communication capabilities and positioning yourself for future growth.

Move to the Cloud with Nextiva SIP Trunking

SIP trunking is engineered for cloud-based communications to revolutionize how businesses provide redundant voice and multimedia communications. IT leaders are tasked with replacing obsolete analog systems with cloud-hosted ones for lower cost, greater scalability, and stronger business continuity.

This modern approach replaces traditional phone lines, allowing businesses to make and receive phone calls, conduct video conferences, and send messages from a centralized location.

With Nextiva SIP trunking, your business can scale its communication capabilities without breaking the bank. Get your customized quote today — and mix and match solutions to meet your needs.

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