What are SIP Trunks?

As a business owner, you are constantly looking for ways to cut costs and re-prioritize your spending. With all the services you are tasked with managing (merchant services, shipping services, payroll services, etc.) it’s understandable you haven’t mastered the knowledge of each industry. Maybe you’ve heard of SIP trunking, and maybe a friend of yours saves money by using it with his business, but you’d like to know more about how it works before you contact providers.

Conventional analog phone lines have dominated business communication for a century. Long distance and international calls can cost a fortune. The fact that a traditional copper-based phone line can only handle one call at a time means you’re constantly investing in a new “trunk”, every time you need to add call capacity.

By allowing you to make calls over the Internet, VoIP can reduce costs of long distance calls while making it far easier to scale up the number of calls you need to make at once.

A SIP trunk is the virtual version of an analog phone line. Using SIP trunks, a SIP provider can connect one, two, or twenty channels to your PBX, allowing you to make local, long distance, and international calls over the Internet. If you have an on-premises PBX in your office, a SIP trunk provider can connect to you and allow you to make outbound calls on your existing system, without restrictions on the number of concurrent calls.

Metered SIP trunking is delivered and charged on usage, so each minute will incur a charge. Metered trunking is very flexible in that there are no limitations to the number of concurrent calls, as you are just charged for each minute of each call. Metered services allows businesses the flexibility to dynamically add calls and just pay for the additional usage.

Channelized SIP trunking is a prepaid option that provides unlimited inbound and outbound local and long distance calls on per channel/call basis. Each Channel provides the ability to make or receive a single call. Once you have filled all of your channels you will be unable to make or receive additional calls. Channels can always be added for more capacity by contacting your provider. This type of SIP trunking service allows businesses a way to easily budget their telecom spending and is similar in capacity handling to copper phone lines.