Choosing the right communication system for your business can feel overwhelming, especially with so many acronyms being thrown around. If you’re looking into SIP trunking vs VoIP, you’re probably wondering how they’re different. While both are rooted in internet-based calling, both SIP trunking and VoIP serve different purposes.
In this post, we’ll break down the key differences between the two so you understand how they work, where they overlap, and which one is the best fit for your business. We’re located in Atlanta, but we serve the entire US with VoIP and business internet services, including Los Angeles, Auburn, Memphis, and Orlando.
What Is VoIP?
VoIP stands for Voice over Internet Protocol, but what does that mean? VoIP is a technology that lets you make phone calls using the internet rather than a traditional phone line. VoIP works by converting your voice into digital data, sending it over the internet, and converting it back to audio at the receiver’s end.
Although VoIP has been on the market since the mid-90s, it has soared in popularity in the past decade as its capabilities have grown. VoIP has become a popular choice for many businesses because it comes with more than just voice calling. Most VoIP providers also offer features like video conferencing, voicemail-to-email, call forwarding, and even mobile app integration. Unlike traditional phone systems that require dedicated copper lines and hardware, VoIP works through software, making it easier to scale, manage, and support remote workforces.
Pros of VoIP
VoIP has become popular for its many benefits, including:
- Affordability: VoIP is significantly cheaper than traditional phone service, especially for long-distance and international calls.
- Portability: With VoIP, you can make and receive calls from anywhere you have internet access. This enables remote and hybrid teams to collaborate better.
- Scalability: With traditional phone service, adding a new line is a pain. You have to hire someone to physically install the line, which can be expensive. With VoIP, it’s typically as simple as signing up for more lines through the VoIP platform.
- Advanced features: In addition to voice calls, VoIP often comes with advanced features like business texting, team messaging, call forwarding, auto-attendants, video calls, and more.
Cons of VoIP
Although VoIP is a great option for business telecommunication, it does come with some disadvantages, including:
- Internet dependent: You’ll need a reliable, high-speed internet connection in order to make calls.
- Power dependent: VoIP phones need both power and internet. If either goes down, so do your phones.
- Security risks: VoIP is more susceptible to hacking, phishing, and other security risks than traditional phone lines, so you’ll need to set up encryption and firewalls to stay secure.
What Is SIP Trunking?
SIP stands for Session Initiation Protocol. Like VoIP, it’s a method of delivering voice and other unified communications services over the internet. However, SIP trunking and VoIP are not exactly the same thing. SIP trunking is a specific way to connect legacy systems to the internet, enabling VoIP calling.
SIP trunking works by using the Session Initiation Protocol to establish and manage voice and multimedia communication sessions over the Internet. It connects your PBX to the Public Switched Telephone Network via the internet and is essentially a bridge between analog and virtual technology. Instead of using phone lines, SIP trunks act as virtual channels that transmit data in real time. When you make a call, the SIP trunk sends a request to initiate the call, establishes the connection, and then handles audio transmission between parties. This setup enables businesses to modernize their phone systems without replacing existing infrastructure.
SIP trunking doesn’t just enable voice data over the internet. It actually transmits any type of data. It also supports continuity features, such as automatic call rerouting during outages, making it a reliable solution for organizations that need high availability.
Pros of SIP Trunking
SIP trunking offers an affordable way to update your business phone system. Some of the pros of SIP trunking include:
- High-quality audio: SIP trunking provides crystal clear audio quality, especially compared to traditional phone service.
- Cost savings: Like VoIP, SIP trunking eliminates the need for physical phone lines and saves you money on long-distance and international calls.
- Scalability: Adding or removing lines is easy without the need for any new hardware.
- Integrations with UCaaS: SIP trunking providers offer integration with UCaaS (Unified Communications as a Service) so you can handle all your telecom needs in one place.
- Modernize legacy systems: If you have a traditional PBX system, SIP trunking allows you to update your connection, allowing you to use the internet to make your calls rather than paying for traditional phone service.
Cons of SIP Trunking
When comparing SIP trunking vs VoIP, both have similar disadvantages. The cons of SIP trunking include:
- Internet dependence: You need a stable, high-speed internet connection for SIP trunking to function well.
- Upfront setup: Unlike VoIP, which has little-to-no setup, SIP trunking might require some upgrading to your network infrastructure. You may also need IT support or help from the provider.
- Fewer features than VoIP: VoIP often comes with tons of features built in, but SIP trunking isn’t as feature-rich. Typical features include local and toll-free numbers, call analytics, and sometimes call recording.
SIP Trunking vs VoIP: When to Use Each
When comparing SIP vs VoIP, you may be wondering which one to use. Each has its own purpose.
You should use VoIP if:
- You’re starting from scratch with no existing PBX system.
- You want simplicity, with easy setup and minimal IT involvement.
- You need remote or mobile-friendly communication for teams working from multiple locations or home offices.
- You’re a small business or startup looking for a lower upfront cost and less complexity.
You should use SIP trunking if:
- You already have an on-premises PBX and want to connect it to the internet for VoIP calling.
- You want to keep your current phone system and upgrade the connection.
- You need more control or customization with routing, failover, and call handling.
- You’re a mid-to-large business with in-house IT and more complex telecom needs.
How They’re Similar
SIP trunking and VoIP are similar because they both use the internet to make phone calls over the internet instead of traditional phone lines. Both reduce or eliminate the cost of long-distance and per-line charges and make it easy to add or remove lines. They often work together, as both rely on the Session Initiation Protocol (SIP) to transmit voice and multimedia data.
How They’re Different
Although they have some similarities, there are some key differences between SIP trunking vs VoIP. In general, VoIP is a broad term for the technology that allows voice communication over the internet, where SIP trunking is a specific way to connect PBX systems to VoIP.
Here are some other differences between SIP trunking vs VoIP:
| Feature | VoIP | SIP Trunking |
| Infrastructure | No physical PBX needed; works via apps/softphones | Requires a PBX system |
| Setup | Usually cloud-based with hosted providers | Requires an on-site or cloud PBX and SIP trunk provider |
| Protocols used | May use SIP, H.323, WebRTC, etc. | Only uses SIP |
| Best for | Small to medium businesses and remote teams | Mid to large businesses with an existing PBX |
| Flexibility | Less control, but simpler to manage | More control over routing, failover, and phone logic |
| Providers | Top providers include Nextiva, Vonage, and RingCentral | Top providers include Twilio SIP, Bandwidth, and Voxtelesys |
SIP Trunking vs VoIP Conclusion
Now that you understand the similarities and differences between SIP trunking vs VoIP, you might be wondering which one is best for you. If you already have an on-premise PBX system, SIP trunking can be a great way to save money and upgrade your setup. However, it typically offers fewer features than VoIP and can be more complicated to set up. VoIP, on the other hand, is a great option for businesses of all sizes. It comes with tons of advanced features and requires little to no maintenance on your part.
Finding the right provider for your business telecom needs can be overwhelming. If you’re looking for professional help, OneStop Communications is here. We’ll provide quotes from multiple providers and offer advice on the best setup for your business. Contact us today to learn more!
