SIP Trunking

The Quick and Dirty: What is SIP trunking and how can your business benefit?

If you know a little something about VoIP or unified communications, then you’ve probably heard the term “SIP trunking” before. And if you’re like most people, then odds are you have no idea what it means or what it even is.

So let’s clear things up.

What is SIP trunking?

SIP stands for Session Initiation Protocol, and it’s a protocol used in conjunction with VoIP.

Trunking — or a trunk — is a line that carries signals and, ultimately, connects those signals to the main components of a communication platform.

The SIP trunk, as a whole, connects your organization to its internet telephony service provider (or, ITSP).

This connection is not a physical one. Instead, it’s a virtual connection used for voice, video, and other real-time communication such as instant messaging and conferencing. Since it’s a virtual connection, there is no need for extra hardware or wiring to keep the conversations flowing.

“In North America, 45% of businesses are already using SIP trunking.” — Infonetics Research

No, but really. What is SIP trunking?

That explanation probably cleared up nothing for you. In fact, you’re probably more confused now than you were before.

So here’s the nitty-gritty.

Basically, SIP trunking enables communication to happen over the internet in a variety of ways — whether that way is an instant message, an email, or a video call.

It’s a component of VoIP, but it isn’t VoIP itself. It’s simply a protocol VoIP uses to support its communication functions; however, there are other protocols that can be used.

But where SIP trunking stands out is when you consider its many benefits.

“Small businesses that switch to VoIP reduce the cost of their local calls by up to 40%, and save up to 90% on international calls.” — Tech.CO

What are the benefits of SIP trunking?

  1. Since calls are routed via an internet connection, the cost of long distance calling is reduced.
  2. With the decrease in physical hardware and wiring, setting up a SIP-enabled communication platform is painless and can be accomplished within minutes.
  3. An added benefit of less physical hardware and
  4. wiring is the elimination of the maintenance and management a physical infrastructure requires.
  5. As an added, added benefit of less physical hardware and wiring, the upfront cost of a SIP trunk is relatively low in comparison to the implementation of a traditional phone system.
  6. Since SIP trunking unifies communication on a variety of platforms, a team of professionals can collaborate efficiently when they’re on the go and out of the office.
  7. SIP trunking also enables business continuity because you can maintain communication as long as there’s an internet connection present.

“By 2018, 42% of firms will send 100% of their traffic over SIP trunks.” — SIP.US

As discussed earlier, SIP trunking is a component of VoIP, and just like SIP trunking, VoIP can also provide a company with a slew of invaluable benefits. If you’d like to read more about VoIP and cloud-based communications, then take a look at our latest article, 4 things you should know about a cloud phone system.