RingLeader Blog

What is SIP Trunking? And How Does it Work?

February 5, 2021

what is sip trunking and how does it work

What is SIP trunking? SIP refers to session initiation protocol. Simply put, these are the connections that allow you to access the information sent from your SIP trunks to the specific point or end-point. The traffic that comes into and leaves a given number of IP networks is typically broken down in this manner. This is basically the way that all of your computer networks to communicate with one another over the Internet.

The use of SIP is becoming more popular among all kinds of businesses and homes around the world. Some types of businesses and residential phone systems may utilize different methods of communication over the Internet. SIP trunking allows for very fast and clear transmissions so that all parties involved can get their point across in a timely fashion. This is what is known as real-time communications technology.

There are many benefits to utilizing this type of system for your business communications needs. In fact, there are so many benefits that it would be impossible to mention them all here. It is important to understand, though, how this works behind the scenes before delving into the topic of SIP trunking in general. There are three parts to understanding this kind of system, and they are listed below.

First off, it is critical to understand that most every commercial VoIP provider offers some form of SIP trunking. Most providers will offer SIP trunks on their business phone systems as well as their residential voice plans. They do this because they realize that it is in the best interests of all involved – clients, carriers, and telephone systems – to have consistent, reliable communications. Customers who have regular telephone calls with outside businesses or companies will appreciate being able to dial in to their own conference calls, as well as being able to use their voice mail for those matters where they prefer not to read a document or chat online.

Secondly, it is important to understand how SIP trunks work. It is done via a specially configured, computer-based system. This is called an IP network, and it is the connection that provides the connection between voice packets and data packets, as well as any other information-carrying media, through a private local network. The technology is actually quite straightforward; the way it works is by utilizing special software or computer applications to generate and maintain the necessary links, called hops, as well as to process and route the information. In this way, SIP trunking provides commercial businesses with access to a quality phone system and voice networks that can meet their needs in voice and data transfer.

Trunks are usually established with little or no prior notice to the customer. They typically come about when a particular company decides to purchase or acquire another company’s telephone system and associated technologies. Essentially, a large corporation may decide to purchase a company’s fiber-optic network or VOIP service from a service provider, and then lease or sublease their trunks from that provider. In this manner, the size of the company’s bottom line is not altered by purchasing or leasing additional technology – rather, they simply move existing communications infrastructure to make use of this additional service. In fact, in many instances, companies will actually be able to maintain their present phone systems while making use of SIP trunking.

How does SIP trunking work? Essentially, once the company that is buying or leasing the system has established a relationship with the provider of their chosen trunking technology, their employees will begin to receive calls from clients as they would if they were making a normal phone call. Because these calls are routed through the provider’s system, it is impossible for anyone at any location to trace the call – even the originating company. Instead, all calls that are made within the range of the company’s infrastructure are routed over the Internet, and a unique IP address is assigned to each outgoing call.

As you can see, there are several benefits to using SIP trunking. The primary benefit is the increase in company efficiency, as more than one office can utilize the same phone system without having to have its own dedicated phone system. Another benefit is the reduction in capital expenditure that can result from the use of SIP trunking. Finally, when a company makes the decision to purchase SIP trunking, they are typically doing so because they are looking for ways to improve their profit margins, increase their customer base, and/or improve their level of service to their customers. With these benefits in mind, it is easy to see why an organization would want to establish a relationship with a reliable SIP trunking provider and begin taking advantage of their high-quality services today.