what is sip trunking and how does it work

What Is SIP Trunking?

April 26, 2023

In the ever-evolving and expanding world of technology, it can be challenging to keep abreast of the terminology. You may have encountered certain terms or concepts before, and may even be aware that they are valuable business solutions, but lack a solid understanding of their functions. SIP trunking is likely one of those terms. So, what is SIP trunking?

In a nutshell, Session Initiation Protocol (SIP) trunking is the digital version of old analog phone lines upgraded to incorporate the sending and receiving of other information in addition to voice data. However, that is a very simple explanation for a revolutionary technology that has changed how businesses operate and continues to streamline communications. In this post, we will discuss in more detail what SIP trunking is, how it works, and the multiple benefits it offers to businesses. 

What Is SIP Trunking? A Detailed Look 

SIP trunking is a communications technology for business and home phone systems. Unlike traditional landlines, which connect the starting point to the endpoint via a series of PBX lines, SIP operates via your pre-existing WiFi.

SIP trunking enables the transmission of data such as voice data, images, video, and other media across a virtual network. The high-quality data reaches the endpoint almost instantly using VoIP technology.

The Connection Between SIP and VoIP

Though there are differences between the two, SIP trunking and VoIP are closely related. You can use these software systems to place and receive calls or share media. Think of SIP trunks as the highway and VoIP as the car that you use to drive to your destination.

If you’ve ever used services like Skype or Facebook Messenger calling, you’re already familiar with Voice over Internet Protocol (VoIP) services. These interfaces make it possible for you to access the data sent between your SIP trunks and the endpoint.

Related: SIP Phone Service: Does Your Business Need It?

SIP setup is quick and easy when you have a robust high-speed internet service and a good SIP trunking provider. Once configured, you can immediately start using VoIP on any number of devices. Both in-house and remote workers can begin using VoIP phones, computers, tablets, and smartphones to access software and share information.  

The Difference Between SIP Trunks and SIP Channels

So now that you’ve answered the question “what is SIP trunking?” and understand how VoIP enables communication, you may be wondering where SIP channels fit into the equation. How do they differ from a trunk? Though you may see the terms trunk and channel used interchangeably, they aren’t synonymous. Rather, one is a component of the other.

A SIP trunk is a virtual collection of channels. Its function is similar to that of the traditional phone cables that connected telephone exchanges. Each channel enables one incoming and one outgoing call simultaneously. If your business handles only a few calls and uses other applications for most communication, you may not need more than one or two channels.

The more concurrent calls you expect to occur, the more channels you’ll require. That means that if your business depends heavily on telephone communications, you’ll need additional channels according to your needs. When you work with a quality SIP trunking provider, they will be able to help you determine the right number of channels for your business. 

What Are the Benefits of SIP Trunking?

Any in-depth discussion of what SIP trunking is would be incomplete without an explanation of its value. SIP trunking provides many benefits to the businesses that take advantage of this technology. 

Heightened Productivity

The modern office looks much different now than it did five to ten years ago. It is not unusual to encounter fully remote businesses, where the workforce is located around the globe with no brick-and-mortar location. Many other offices have adopted a hybrid working model, where people work from home part-time and only come to the office on certain days.

How can these companies continue to grow, scale their operations, and gain a competitive advantage? The answer is through SIP trunking and VOIP. They harness these technologies to support a unified communications platform that streamlines communication and enables remote workers to achieve an in-person level of collaboration. Having all the software as part of a unified platform also minimizes or eliminates user training and ramp-up time, and simplifies maintenance for tech services when compared to using multiple disparate systems.

Lower Costs

SIP trunking is an effective way to reduce your expenses. It does not require an in-person visit from a qualified technician for the installation of phone lines. The monthly charges for SIP trunks are nominal, particularly when compared to expensive monthly landline fees.

You also won’t need to pay for maintenance on your SIP trunks as you would for PBX phone lines. There’s no hardware or physical infrastructure that can break or need repair, and pretty much all issues that might arise can be fixed via WiFi.

Flexible Scalability

One of the most useful features of SIP trunks is that they are easy to scale with your business. You can add and use any number of channels so that your staff can handle as many incoming and outgoing calls as necessary without paying for phone lines or waiting for installation. Many providers supply a dashboard where you simply add or subtract features, so the change is simple and virtually instantaneous. The channel capabilities are only limited by your internet bandwidth. 

Useful Add-Ons

SIP has a huge number of useful add-ons that make it a great communications solution. Here are some of the best:

  • Caller ID
  • Call data records
  • Fax-to-email services
  • Software to access faxes from computers
  • Business SMS
  • Automatic emergency calling

There are many more possible add-ons, so make sure that you do your research.

Reseller Revenue Stream

Becoming a SIP reseller is an effective way to add to your service offerings and expand your sales portfolio. It allows you to attract a new customer group and further increase your value to existing ones. Rather than looking to new vendors, the majority of customers prefer to work with established local companies when seeking additional services. Now you can provide the services they need while expanding your brand and strengthening customer loyalty.

Related: Your Step-by-Step Guide to Building a SIP Trunk Reselling Business

With the right SIP trunking provider, you will be able to provide high-quality services and features to your customers with best-in-class customer support, without starting from scratch. There is no need to install expensive infrastructure, invest in lengthy education, or hire additional staff. 

You’ll receive training, support, and all the resources you need to provide SIP trunking to new and existing customers. Even better, these valuable services will all be offered under your own brand architecture. 

Get Started With SIP Trunking

So, what is SIP trunking? Now you understand that it is a simple way to make business communications faster, more effective, and less frustrating for everyone involved, and you can focus on choosing the ideal provider. SIPTRUNK offers all the features, convenience, and reliability you require to manage your business needs, as well as the opportunity to become a reseller.

If you are ready to leverage the most effective communications technology on the market, it’s quick and easy to get started. Set up an account with us today and begin reselling SIP trunks to your own clients. It’s an excellent way to share all the day-to-day SIP benefits with your customer base while developing your own revenue streams.