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By Symplicity Communications
Published April 28, 2024
Symplicity CommunicationsVoice

Types of SIP Trunking

Traditional phone lines fail to meet the needs of today’s mobile workforce. SIP trunking modernizes communication through voice over internet protocol (VoIP) technology that slashes costs while unifying systems across devices. 

Different SIP trunking solutions offer different reliability, scalability, and recovery time capabilities. Let’s find the right one for your business.

Quick links:

What is SIP trunking?

Hosted SIP Trunks

Cloud-based SIP Trunks

On-premises SIP Trunks

Hybrid SIP Trunks

How to choose?

Cost comparison

If you need help choosing an internet telephony service provider, we can help. Contact us, and we’ll take a look at the top SIP trunking providers to help you choose the one that meets your business needs.

What Is SIP Trunking?

Session initiation protocol (SIP) trunking has emerged as a valuable modern business phone system, surpassing traditional analog telephony.

SIP trunking offers companies several key advantages:

  • Consolidation of voice, video, chat, data, and mobile into a unified platform
  • Potential calling cost reductions of 50% or more compared to analog phone lines
  • Advanced call tracking and analytics features
  • Easy scalability to add lines and adapt to needs
  • Built-in disaster recovery for greater resilience
  • Flexibility for remote or in-office work

SIP trunking systems unite communication tools that drive enhanced collaboration, customer service, and operations.

Hosted SIP Trunks

Hosted SIP trunks are VoIP phone lines provided by a hosting company rather than the enterprise itself. The hosting provider takes care of maintenance, uptime, upgrades, and disaster recovery. Call data is transmitted securely over the public internet to the provider’s data center.

Benefits

Benefits of hosted SIP trunks include:

  • Reliability. Hosted SIP providers often guarantee high uptime, leveraging robust security measures and redundancy to ensure service continuity. Far more resilient than any premise setup.
  • Easy scalability. Seamlessly add or remove SIP lines through a self-service web portal as your business needs change.
  • Affordability. Hosted SIP allows you to pay a competitively priced monthly fee per line. No expensive private branch exchange (PBX) hardware purchases are required.

Drawbacks

Customization may be more limited when compared to other SIP models that offer greater flexibility, control, and on-premise data ownership.

Users must rely on the host for security patches, updates, and compliance. Peak demand can impact call quality.

Despite their drawbacks, hosted SIP trunks perfectly suit small businesses that lack the resources to deploy and manage sophisticated in-house systems. The affordability, reliability, and ease of scaling also appeal to many larger firms.

Cloud-based SIP

Cloud-based SIP trunks leverage cloud computing to deliver calls over the internet rather than through the traditional public switched telephone network (PSTN). Instead of having on-premises SIP equipment, the call routing, signaling, and intelligence happen remotely in the provider’s secure cloud platform.

Benefits

Cloud-based SIP trunks offer:

  • Flexibility. A cloud-based SIP integrates easily with popular business apps and can route calls based on real-time conditions.
  • Reliability. Leading cloud platforms deliver robust redundancy, automatic failover, and geo-diversity for high uptime.
  • Scalability. A cloud-based SIP makes it easy to scale by quickly adding extra capacity or resources.

Drawbacks

The SIP cloud provider is responsible for data protection, compliance, and access-control updates, raising security concerns.

Heavy network congestion or outages can lead to lags, echo, or dropped calls that disrupt communication.

Despite their drawbacks, cloud-based SIP solutions best suit larger enterprises that need scalable systems with deep integration to unified communication (UC) tools such as Salesforce, Zendesk, or Microsoft Teams.

On-Premises SIP Trunks

On-premises SIP trunks involve deploying SIP-enabled PBX hardware on-site and connecting to an SIP trunking service provider over the public internet. This allows direct control over the phone system while leveraging IP telephony.

Benefits

The benefits of on-premises SIP trunks include:

  • Customization. Tight integration with other customer data, workflows, and business apps.
  • Video enabled. Local PBXs can handle video calls and conferencing.
  • Infrastructure control. The capabilities of existing phone infrastructure are maximized.

Drawbacks

Uptime, reliability, and call quality maintenance require expert internal IT staff that can perform:

  • Security patches and system upgrades
  • Resiliency testing and monitoring
  • Potentially complex maintenance

On-premises SIP trunking solutions best suit large companies that already have or can fund the technical staffing and expertise required to manage the system.

Hybrid SIP Solutions

Hybrid SIP trunking combines on-premise PBX hardware with additional infrastructure from a hosted trunking provider to deliver unified communication capabilities.

Benefits

Benefits of a hybrid SIP approach include:

  • Gradual migration path. The existing hardware investments and on-site voice channels are blended with the resilience and scalability of cloud-based SIP services, allowing a smooth transition.
  • Unified communication. Video conferencing, instant messaging, presence, and other UC features are available.
  • Leverage prior infrastructure. Aspects such as primary rate interface and SIP peering links are maintained, maximizing value from legacy systems during a transitional period.

Drawbacks

Integrated endpoints across cloud and physical environments require diligent monitoring, increasing operational complexity. Potential compatibility issues can emerge between cloud providers and on-premise hardware vendors. 

Hybrid SIP deployments often need a clearer long-term roadmap and remain an interim stepping stone, lacking strategic direction.

Despite this, hybrid SIP trunking appeals to larger enterprises that have made significant investments in PBX equipment but now want to integrate affordable, resilient, and scalable cloud SIP trunk services.

How to Choose the Right SIP Trunking Service?

SIP trunking services can unify communications and enhance productivity. To choose the right one:

  • Assess the number of concurrent calls needed during peak periods to properly size SIP channels and capacity.
  • Determine the physical connections from legacy PBX systems that require integration.
  • Validate a reliable internet connection to avoid lag, echo, or dropped video and phone calls.
  • Consider current customer service software, contact center solutions, and other apps to integrate into the SIP platform for workflow unification.
  • Estimate total cost including any physical phones and devices not supported by the trunking provider.
  • Confirm vendors can port existing phone numbers with no downtime during the transition period.
  • Verify security measures and compliance standards match internal policies and industry regulations.
  • Check for proactive monitoring, quality assurance, and dedicated customer service practices.
  • Review potential savings on local, long-distance, and international calls under the new voice provider.

Cost Comparison of Different SIP Trunking Options

Here’s a breakdown of the average costs associated with each type of solution.

TypeUpfront costsOngoing costsConsiderations 
Hosted No hardware purchasesPer-line monthly fee (varies based on features and call volume)Simple setup and easy budgeting
May offer limited customization
Cloud-basedNo hardware purchasesPer-line monthly fee (often more expensive than hosted SIP)Highly scalable, flexible features
Potential security concerns with data location
On-premisesPBX hardware and installation costsPer-line monthly fee (may be cheaper than hosted SIP)
IT staff and maintenance costs
Full control and customization
High technical expertise required
Complex management
HybridHardware costs (may be cheaper than full, on-premises systems)
Provider fees for cloud services
Per-line monthly fee (varies based on cloud services used)
IT staff and maintenance for on-premises equipment
Gradual migration path
Balances control and features
Higher complexity than hosted or cloud SIP

Popular SIP Trunk Providers

Some top national and regional providers to consider include:

  1. RingCentral. Offers a robust cloud-based platform with mobile capabilities and deep integration with leading customer relationship management and sales tools.
  2. Nextiva. Competitive pricing with a focus on reliability and customer service has resulted in rapid growth in market share.
  3. 8×8. A feature-packed solution combining voice, video, chat, and contact center features.
  4. VoIP.ms. No frills, low-cost SIP trunking aimed at small and midsize businesses.
  5. Spectrum. Leverages parent company’s fiber network to deliver quality calls and UC features.
  6. Mitel. Long-time telecom provider with strong options for small and medium businesses, as well as enterprise-scale cloud solutions.

Thoroughly compare technical capabilities, reliability track record, security protections, integration options, and price when choosing a SIP trunk provider.

Future of SIP Trunking

As businesses continue migrating from outdated technologies such as ISDN primary rate interfaces and physical lines, SIP trunking adoption will accelerate thanks to compelling unified communications features and resilience.

SIP trunking providers are focused on improving video conferencing abilities, presence indicators, instant messaging, and seamless integration with essential productivity tools such as CRM software. This positions SIP as the ideal foundation for customer service teams in contact centers.

5G networks promise to reduce latency and lag that occasionally impact voice calls, enhancing reliability for mission-critical outbound and inbound calls. SIP vendors aim to maximize 5G’s potential.

SIP trunking also better supports remote workers through virtual phone lines and softphones. As more employees work from home, SIP is proving critical for securely unifying distributed teams with key capabilities (screen sharing, document collaboration, and video meetings) integrated into a single interface.

With the consolidation of multi-modal communications onto IP infrastructures, SIP trunks are projected to reduce calling costs by over 50% compared to analog phone services. Savings and functionality will make SIP the new standard.

About Symplicity

Consider us your trusted partners in the realm of SIP trunking consultation. We deliver comprehensive solutions that can transform the way you manage your communication infrastructure and optimize your connectivity. 

Here is how we can help:

  1. Our top priority is helping you establish a robust and dependable SIP trunking connection. This guarantees constant accessibility to your critical voice and data services, ensuring uninterrupted communication performance and support for your business operations.
  2. We are dedicated to providing you with a flexible and scalable SIP trunking framework. As your communication needs evolve, our services evolve with you.
  3. We recognize the importance of efficient communication in SIP trunking operations. Our solutions are thoughtfully designed to foster collaboration among your network administrators and partners, facilitating smoother communication management workflows and decision-making processes.

Our commitment is to offer you the expertise, guidance, and ongoing support needed to ensure a seamless implementation of your SIP trunking strategy. With our services, you can trust that your SIP trunking will be efficient, reliable, and equipped with the capabilities necessary for your business to excel in the world of modern communication.

In addition to contact center services, we also excel in business intelligence, cybersecurity, managed IT, and more.

Explore our solutions page for a comprehensive overview of the services we provide.

SIP Trunks FAQ

What type of connection is an SIP trunk?

A SIP trunk is a virtual connection, similar to a traditional phone line, but instead of using physical wires, it utilizes the internet (VoIP) to carry voice calls and data. With VoIP technology, SIP trunks can send voice, video, and other unified communications rapidly and securely over broadband internet. This allows businesses to unify systems without costly traditional phone services.

Is a SIP trunk a VoIP?

A SIP trunk is a form of VoIP. It specifically uses SIP to establish, manage, and terminate multimedia sessions within VoIP applications. While VoIP refers broadly to phone communications over the internet, SIP trunking is a specific method that enables these VoIP communications, supporting not just voice but also video, messaging, and fax over the internet connection

How many channels does an SIP trunk have?

The number of channels in a SIP trunk can vary. Each channel on a SIP trunk can handle one phone call at a time. The number of channels can expand and contract dynamically to accommodate the number of simultaneous calls needed. This flexibility is known as “elastic SIP trunking.” 

The maximum number of channels is typically limited by internet bandwidth.

What is the difference between SIP and SIP trunking?

SIP, or Session Initiation Protocol, is a signaling protocol used for initiating, maintaining, and terminating real-time sessions that involve video, voice, messaging, and other communications.

SIP trunking, on the other hand, is a service that uses SIP to connect a private branch exchange to the internet. SIP trunking enables the PBX to send and receive calls via the Internet, effectively replacing traditional telephone lines.

What is the main purpose of trunking?

The main purpose of trunking, in the context of telecommunications, is to consolidate multiple communication channels into a single connection or link. This allows for more efficient use of resources and simplifies the infrastructure needed to connect to a telephone network. In SIP trunking, this means providing a single point of entry for multiple voice and data transmissions between a business’s PBX and the PSTN over the internet.

What is the difference between SIP trunking and IP trunking?

SIP trunking and IP trunking are often used interchangeably because both involve transmitting voice and other communications over IP networks. But SIP trunking specifically refers to the use of the SIP protocol for managing multimedia communication sessions over IP networks. IP trunking is a broader term that can refer to any trunk connection that uses IP technology for data transmission, not necessarily limited to SIP.

What is the difference between SIP trunking and PRI trunking?

SIP trunking uses the internet to connect a phone system to the PSTN, supporting voice, video, messaging, and fax, and is scalable as needed. PRI (Primary Rate Interface) trunking uses a traditional phone line with physical connections and is limited to 23 concurrent calls per circuit. SIP trunking is generally more cost-effective and flexible than PRI, which is becoming outdated due to its reliance on physical hardware and limited scalability

What are the benefits of SIP trunking?

Major benefits of SIP trunking include:

  • Substantial cost savings over old analog phone systems
  • Business continuity with failover capacity
  • Simple scalability to add many lines
  • Unified communications features such as video calling and conferencing
  • Enhanced call analytics and dashboards
  • Mobility benefits for remote workers
  • Productivity integrations with leading software tools and cloud flexibility

Do I need SIP trunking?

Whether you need SIP trunking depends on your business communication needs. If you are looking to reduce costs, simplify your communication infrastructure, support remote workers, or integrate communication forms (voice, video, messaging), SIP trunking might be beneficial. 

It is also suitable if you want to scale your phone system easily as your business grows. Consider your current and future communication requirements, budget, and the quality of your internet connection when deciding.

Do you need a PBX for the SIP trunk?

You typically need a PBX for SIP trunking. The PBX is the internal phone system within a business that manages calls and a range of features such as voicemail, call forwarding, and extensions. SIP trunking connects this PBX to the internet, allowing for the transmission of calls over an IP network. 

With the advent of hosted PBX solutions, the physical PBX can be off-site and managed by a service provider.

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