How SIP Trunking Works: Is It Right for Your Business?

How SIP Trunk Features Works: Is It Right for Your Business

There is a significant difference between a business using modern digital solutions for its communications and one still using conventional methods. That difference is often seen in efficiency, productivity, and internal metrics. Simply put, if you have landlines, fax, email, instant messaging, and video calls, you have several communications channels that need to be managed and tracked. 

This is why companies all over the world are switching to solutions that utilize Session Initiation Protocol (SIP) trunking. However, there are several factors to take into consideration when making the decision to switch over to an SIP trunking solution. 

What Is SIP Trunking? 

SIP trunking is used when a provider of communications services engages in Voice over Internet Protocol (VoIP) to connect a physical phone system to a public switched telephone network (PSTN). 

Most conventional solutions utilize time-division multiplexing (TDM), which uses timed switches to send signals through a path. While effective, TDM has been used for over one hundred years and has seen only marginal improvement since the mid-20th century.  

Recently, businesses have been replacing these TDM systems with SIP trunking options for their reliability, cost-effectiveness, and the ability to bring all of your communications channels under one single platform. 

What Are the Benefits of SIP Trunking? 

Let’s dig right into the benefits below.  

Cost Savings 

Traditional landline monthly expenses can run you about $50 to $80 per line. This doesn’t include the setup, which usually requires experienced technicians to install. Contrast this with SIP trunking options, which can range from $50 down to as little as $10 per user on a monthly basis. Plus, since it just involves downloading an app onto an existing device such as a computer or smartphone, there is no specialized equipment needed and no major setup costs. 

Another area for cost savings is in calling costs. Rather than paying long-distance prices for calls to clients or offices around the world through a traditional landline, a VoIP solution that uses SIP trunking doesn’t have special pricing based on distance. 


One underrated aspect of modern businesses is their flexibility. With SIP trunking, you can scale quickly without extra setup costs or large amounts of hardware. Have a large project coming up? You can add users much more easily than you can add new lines. Plus, once that project is over, you can remove users to maximize efficiency and avoid paying for lines you don’t need. 

Reliability and Redundancy 

Depending on your industry, dropping a call with a client or prospect could cost you your business. SIP trunking is much more reliable than traditional TDM options since it provides critical redundancy in its connections.  

With multiple SIP trunks supporting the same connection from different providers or locations, you can be sure that the call will be secured even if one trunk fails. This redundancy is great for emergency situations where an internet service provider or cell network goes down, allowing you to keep your business running when it otherwise would have shut down. 

SIP Trunking Scenarios for Your Business 

Your organization can benefit in a number of ways from utilizing SIP trunking. Since it makes use of an internet connection rather than through a conventional phone line, it routes your call through to your SIP trunk, which is connected via your internet service provider rather than your phone service. By doing this, you can utilize your existing physical equipment (phones, lines, etc.) while routing your calls through the internet and taking advantage of the security, reliability, and interconnectedness of SIP trunking. 

If your organization has several locations, you’ll have an SIP for each one. The internet service provider will route the call from one SIP trunk to another through their Private Branch Exchange so you don’t lose any functionality when calling from separate sites. 

If you have a hosted VoIP solution, you may receive specialized IP phones that your provider has supplied to your organization. This means that, rather than the SIP software being hosted in your devices on-site, it’s instead hosted with the VoIP provider. This will route calls through the provider for added reliability and a dedicated support team. 

What Lightspar Can Do for Your Business 

When considering using SIP trunking for your business communication solutions, you need to look at all of the factors that could have an impact on your organization. You don’t want your systems to be stuck in the past, but you also don’t want to make large changes to your communication channels without proper guidance. 

Here at Lightspar, we serve as your one-stop shop for all of your IT and internet communications needs. If you’re thinking of making the switch from traditional phone lines to a solution that incorporates SIP trunking, we can help you get there and give you the peace of mind that comes with knowing your business communication systems are in great hands. Give us a call today! 

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