What Is SIP Trunking?

February 2, 2021

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Internet-based phone systems hold a huge advantage over traditional phones. They enable businesses to save money, scale faster, and they help to streamline communications. One of the most popular modern phone solutions for business is SIP trunking (sessions initiation protocol).


The global market for SIP trunking services totaled $10.6 billion for 2020, and is expected to reach $35.5 billion by 2030. To help you decide if SIP trunking is right for your business, we’ve put together an overview of what it is, how it works, and what benefits it provides.

Is SIP Different Than VoIP?

SIP trunking is a specific protocol that enables VoIP (Voice over Internet Protocol). SIP, like VoIP, refers to Internet-based phone communication: phone calls are routed over the Internet. Where VoIP includes any type of voice call made over the Internet, SIP involves an application layer protocol that supports voice as well as video and real-time messaging.

How Does SIP Trunking Work?

SIP trunks essentially act as virtual connections between an Internet Telephony Service Provider (ITSP) and a business’s phone system. They carry all the call data, which is transmitted from one endpoint to another. Endpoints are generally phone systems, and calls are placed through the Public Switched Telephone Network (PSTN). For example, a call can be sent between cloud-based phone systems, from an IP-based PBX to a softphone user, or through almost any other combination, erasing the need to use phones that are connected to a desk to conduct business calls.

When a call is made, it’s broken into digital packets, which are then transmitted over a packet switch network. Calls are sent from one SIP address to another, but that doesn’t mean you can only make SIP calls to another SIP device. No matter what phone system your receiver uses, the call will still be delivered. The difference is, because you’re using virtualized technology, the quality is often much better than what you’d experience with a traditional phone system.

How Easy Is It to Use SIP Trunking Technology?

Getting started with SIP trunking is simple. You won’t need a large physical “trunk.” Your SIP provider will deliver a set of protocols so your organization can start benefiting from Internet-based calls. They should also handle setup and onboarding.

If you’re already using a VoIP phone service and an IP-enabled Private Branch Exchange (PBX), your vendor can connect SIP channels to your PBX. Most modern phone systems are compatible with SIP trunking and won’t require any extra equipment.

How Can Your Organization Benefit from Using SIP Trunking?


The primary benefits of SIP trunking are cost-savings and efficiency. When you switch to this technology, your business no longer has to pay the phone company for multiple lines. You’ll also save on fees for long-distance and international calls. With SIP trunking, you can save as much as 50 percent on telephony costs.

Reliability and business continuity

With an Internet-based phone system, your business isn’t at risk of call disruptions due to local outages. When comparing SIP providers, look at their uptime guarantees and the quality of their data centers. A vendor that relies on enterprise-grade data centers can promise near-flawless reliability, giving your organization total confidence that your customers and prospects won’t have to deal with a lapse in your business’s communications.

Easy scaling

With SIP technology, you can combine voice and data into a single network. This ability makes it possible to consolidate remote workers and global locations into one phone system. When you’re ready to scale – whether across the country or across the world – your telephony system is already set up and ready to incorporate new sites and new workers.

Unified communications

If your SIP provider offers unified communications as a service (UCaaS), you can integrate all of your communications – voice, chat, video conferencing, screen sharing, and file management – into one platform. You’ll have fully streamlined communications, at scale, while enjoying the cost-savings of Internet-based telephony systems.

Is SIP Right for Your Business?

If your organization is looking for a modern phone solution that can help your business save money and enhance business continuity, SIP trunking may be a smart option. It is important, however, to partner with a vendor that can meet your compliance, data security, and reliability needs, while also ensuring a seamless onboarding process. Contact Intermedia to learn about how simple switching to SIP can be for your business.

The Intermedia Team

Intermedia helps over 135,000 businesses connect better – through voice, video conferencing, chat, contact center, business email and productivity, file sharing and backup, security, archiving, and more – from wherever, whenever. And, as a partner-first company, Intermedia goes to work for over 7,300 channel partners to help them grow their revenue and maximize their success.

February 2, 2021

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