SIP Trunking

SIP Trunking: The Benefits for your Business

SIP trunking represents a relatively new way to manage business telephony and, in conjunction with a comprehensive business voice-over-IP (VoIP) system, can provide significant advantages for corporate use. These advanced technological systems are designed to provide the features and functions businesses need most without creating degradation of voice quality. This versatility and functionality makes SIP trunking one of the most important developments in modern corporate telephony systems.

SIP Protocol Overview

SIP stands for Session Initiation Protocol. This protocol performs four major functions in VoIP telephony:

• Establishes a unique location for the user
• Provides a common set of features for all users in the session
• Performs all connection, disconnection and transfer functions
• Adjusts, adds and removes features during a session

As the source of these functions, it is evident that SIP is one of the most important protocols in VoIP system management and provides users with the telephony tools needed in the business environment.

What is a SIP trunk?

SIP trunks are services based on SIP protocols that provide businesses with multiline capabilities in a VoIP telephony environment. This allows the transmission of multiple conversations, data streams and other forms of real-time communication while lowering costs for businesses. SIP trunk systems can be integrated into existing telephony arrangements to produce seamless data and voice connections for all employees in a given location. Rather than purchasing multiple phone lines through a Public Switched Telephony Network (PSTN), SIP trunk systems allow the same degree of accessibility at a fraction of the cost. SIP trunking puts the power of the Internet to work to reduce costs and provide outstanding quality and flexibility in the business world.

Necessary components for SIP telephony systems

Three elements must be present in order to create a SIP trunk telephony system. These components are:

• A private branch exchange (PBX) that serves the company's telephone routing and switching needs
• An online SIP trunk service provider
• Hardware to allow the PBX and trunk service provider to interface seamlessly

When properly configured, these elements work together to route, connect and disconnect calls throughout the business. The same components can be used to provide internet access and other advanced telephony needs including video conferencing and telepresence applications. SIP trunking systems can be used in conjunction with legacy equipment in almost all cases, making them a highly cost-effective choice for businesses on a budget.

Cost advantages of SIP trunk systems

One of the most important advantages of SIP trunk systems over traditional PSTN systems is the cost. The cost of multiple phone lines from traditional providers can be prohibitively expensive, especially for smaller businesses with a limited communications budget. By using the company's Internet connection to create a scalable telecommunications solution, adding additional lines is simple and involves expanding bandwidth, not subscription costs. Many businesses already enjoy the cost benefits of VoIP; SIP trunk systems take that savings to the next level with a faster return on the initial investment and the same high-quality services that traditional PSTN connections have historically provided for business.

Easy to expand as needs change

When a standard phone line is in use, it is unavailable for any other users and is dedicated to the session it is currently supporting. VoIP and SIP trunk systems are fundamentally different. Because bandwidth is shared among a number of different sessions, the SIP trunk system can accommodate multiple sessions and uses. Once a session is terminated, the bandwidth used for that session is once again available for use by any other session. This degree of flexibility means that companies can increase the resources available for telephony by adding bandwidth rather than committing to additional phone lines. SIP trunking allows companies to get the most out of their existing bandwidth.

Implementing SIP trunking in the corporate environment

A number of vendors offer these advanced telephony solutions for their customers. Hosted PBX, VoIP and SIP systems are among the most cost-efficient and time-saving solutions for smaller businesses, but require a monthly fee. In-house installations and implementations are also available and are more economical as a starting system.

In order to get the best possible deal on SIP trunking implementations, company administrators should obtain quotes from several vendors. Prices and included services can vary widely, so comparison shopping for these services is essential in order to get the best possible deal.  SupplierCompete has partnerships with most of the major SIP Trunking providers in the industry - use our quote form above to request SIP Trunking quotes and start saving.