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UCaaS & Voice
The Advantages of SIP Trunking for Small Businesses

by Kendal Rudolph


4 min


SIP (Session Initiation Protocol) trunking helps an organization’s phone service with the assistance of an internet connection. SIP is basically a signaling protocol to allow end-to-end communication through video, voice, and chat. Overall, SIP trunk providers offer a digital network of phone lines to use your internet connection for managing your business’ voice service. Even Voice over Internet Protocol (VoIP) relies on SIP standards.

What is SIP?

Session Initiation Protocol (SIP) makes use of SIP trunks instead of conventional phone trunks. It makes use of internet connections for transmitting calls between PSTN (Public Switched Telephone Network) and PBX (Private Branch Exchange).

With the use of SIP trunk sessions, it is easier to send messages, such as video calls, voice calls, or instant messages, through the internet while decreasing call costs.

How a SIP Trunk Works

SIP works as a bridge protocol for allowing business phone systems to make phone calls via the internet. It is done after establishing a strong VoIP connection. Traditionally, the routing of voice calls was done via physical ISDN systems. These systems worked using conventional copper lines. However, SIP trunk technology revolutionized it to help businesses optimize the entire communication procedure.

Here is everything required for setting up a proper SIP trunk system:

  • Internet connection
  • VoIP phones/adapters
  • SIP-integrated private branch exchange box (or IP Box)
  • Network connects for phones

For older PBX systems, a SIP-ISDN gateway is required, as modern technology doesn’t always work with older systems.

Benefits of SIP Trunking Services

  1. Efficiency and Cost Effectiveness: For small businesses, it is vital to reduce unwanted costs. However, having more phone lines than required may lead to unnecessary costs. You need to spend money on various things from maintenance to international cost charges. But you don’t have to bear such unnecessary charges when you use a SIP trunk system. SIP trunk systems depend on the user basis. This means businesses won’t be spending unwanted money on resources they don’t require. Plus, the SIP system makes costs very predictable and financial planning much more precise and easier. Hence, many organizations will have less expenses after integrating a SIP system.
  2. Quick fixes and upgrades: For a SIP phone system, a business doesn’t need a skilled engineer for making any changes. It means that most of the upgrades are fixed instantly and don’t cause any downtime. The service provider handles all the regular updates and maintenance needs, using only an active internet connection. Thanks to these upgrades, there’s advancement in the security system, a reduction in lags and bugs, as well as the addition of the latest features to the existing system.
  3. Consolidated communication systems: Using the SIP trunking system, businesses can make use of the same IP-based network for different types of data transmissions, such as video, voice, and more. So, they don’t require several overlapping networks. There is also no need to subscribe to various services for data and voice. Instead, organizations can build a strong infrastructure via SIP trunking.

    This solid infrastructure enables you to grow without requiring any other new services. For instance, if you need to manage several concurrent calls, there is no need to research a new voice service system to purchase. This system is already within the existing SIP system that helps in enhancing the internet bandwidth.

  4. Better local presence: SIP trunking enables companies to form custom networking for their phone numbers with local area codes. Even if a firm has one location with PBX or multiple locations with multiple PBXs, the SIP trunk system helps in providing better connectivity to everyone.

    Generally, companies without a local presence use standardized toll-free numbers. The problem with such toll-free numbers (maybe around 1000 numbers or more) is that they are generic. They are not customized for local customers, supporters, and prospects.

    However, you can take a different route and ask your SIP provider to set up a local number for you. Even if you don’t have a physical office in your area, phone calls to that number are routed all over the internet to your current location. This will be beneficial for both you and your customers.

  5. Improvement in productivity: When you replace an old phone system with SIP trunking, you opt for a high-performance multimedia architecture with the help of the right provider. Such a communication system enables your people to make the most of fax services, business SMS, and voice-to-email capabilities as per your preference. Using such tools will help your company to boost overall productivity. And, if the internet services go down due to any reason, it’s easier to get calls redirected to a mobile device or any other location.


By making the most of its several business benefits – from cost efficiency and better local presence to improved productivity – SIP enables your organization to communicate via the cloud-based marketplace efficiently and effectively. So, get it installed today!