Could a SIP Line Improve Your Business Communications and Reduce Costs?

21st February 2020

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Effective communications between your business and customers are enabled by many different channels. Whether that’s voice, video or data, the options are endless. But finding a way to centralise your communications needs and avoid unnecessary costs along the way can seem like a daunting challenge.



SIP trunking could be a cost-effective option for you if:

  • You are a large or growing company handling multiple outgoing and incoming calls.
  • Your business has a single channel Private Branch Exchange (PBX) but struggles to manage expensive international calls.
  • You want to keep control of your phone systems but want the flexibility of scaling your voice infrastructure.

SIP trunking may be the answer. But what is SIP trunking, and how do you know if it’s right for your business? Here is all you need to know.

What is SIP Trunking?

In analogue phone systems, most businesses have a PBX for voice calls that then communicates with the outside telephone lines. SIP (which stands for Session Initiation Protocol) trunks are virtual phone lines that allow you to make and receive calls over the internet to anyone in the world who has a phone number. A “trunk” is a line or link that carries signals and connects nodes in a communications system; in other words, a pipe that carries the data channels inside it to connect two locations.

SIP trunking replaces the traditional method of the Public Switched Telephone Network (PSTN), which is a copper-wire, circuit-switched network that requires a physical connection between two points to make a call. Instead, SIP trunks use a packet-switched network, which breaks down voice calls into digital packets and sends them over a network to their destination.

SIP is a protocol used to initiate, maintain, and terminate multimedia communication sessions in VoIP – a market that is projected to reach $30,441.5 million by 2025. SIP trunking held the largest share in the market in 2019.

What is SIP Trunking Used For?

SIP trunking is a method of sending voice and other communications over the internet through an IP-enabled Private Branch Exchange (PBX). Your SIP trunk essentially lets you access the Public Switched Telephone Network (PSTN) using your existing internet connection. Where a PBX cuts down on costs by avoiding the need for each user to have a line to a telephone company’s central office, SIP transforms digital impulses into data that travels along existing phone lines. And it works for all kinds of data.

SIP establishes and terminates the connection for a phone call, controls the transfer of data and is what enables services like Skype and Facebook Messenger to provide free calling anywhere around the world. It can be used to send and receive local and long-distance calls, text messages, and emails, browse the internet and conduct video chats.

What Are the Benefits of SIP?

Cost Control

The most significant benefit of using SIP trunking as your business phone system is that it is highly cost-effective. This is due to many reasons, but mainly because it eliminates the costs of long-distance calling. If your business often makes phone calls across the country or the ocean, SIP trunking may be the answer for you.

A SIP trunk enables all calls to be local calls by carrying them over the internet, avoiding the costs of international or long-distance calls. The SIP trunk sends the call to the provider’s termination point, where the call is transferred to a local PSTN, therefore only charging you for a local call. The longer you use it, the lower your costs per user or line.

Immediate Scalability

Each SIP trunk can hold an unlimited number of channels, meaning your business would only need one, no matter how many calls you have coming in and going out at one time. The more phone calls you have running concurrently, the more channels within the trunk you’ll need.

With no physical installation or setup necessary and no maintenance or hardware cost, new channels can be added and enabled within hours, meaning it is flexible and easily scalable.

Centralised Network

SIP also eliminates the use of both data and telephone voice networks. Because SIP is IP-based, you can enjoy one centralised network with multiple digital streaming capabilities.

The removal of the PSTN gateway allows the SIP trunk to connect directly to your chosen internet telephony service provider (ITSP). It removes subscription fees and gives you greater flexibility in how you scale your telecommunications services by providing more bandwidth increment options at lower rates.

Strong Business Continuity

SIP trunking services are a flexible and resilient option in the event of a disaster. Whether it’s a network failure, natural disaster or hardware problem, your SIP traffic is controlled via a central location, meaning your calls can be automatically diverted to a different site should the worst happen.

Call control management is a powerful business continuity solution, giving you the ability to manage your number estate and all aspects of your calls. Feature-rich, centralised call control management software allows you to access market-leading call bundles and supplies fraud management tools that also protect you and your customers with spending limits.

Would you like to know more about how a SIP line can help your business? Let us explain how we can create a bespoke solution for your requirements and provide a free of charge, no obligation quote. Please call us on 0333 060 9617.