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Even though businesses have used TDM trunks to connect their PBX systems to the standardize PSTN (Public Switched Telephone Network), VoIP is becoming significantly more popular. VoIP (Voice over Internet Protocol) has simplified the business network architecture for communicating, and is saving businesses money every month.

The Definition of SIP Trunking

Voice over Internet Protocol (VoIP) uses SIP (Session Initiation Protocol) technology as an effective virtual communication tool. SIP technology was first developed back in the early 1990s by the IETF (Internet Engineering Task Force). This technology is used as the set up and termination points to generate a dial tone for VoIP calls. It does this by using broadband technology to create a virtual phone system over a private line, or public line, such as the Internet.

Saving Money

The entire process of SIP trunk technology consolidates the voice architecture and simplifies the entire process. It is designed to support voice calls, data transfer and video conferencing using a standard Internet provider. In effect, a single SIP trunk can eliminate the need to use and maintain multiple trunks using TDM technology.


SIP Trunking technology is highly adaptable. It allows the business to add or decrease capacity during fluctuating times of business. Businesses can add greater capacity during high call traffic times, and pay for only what they use. Traditionally, any business that utilizes T-1 lines is required to purchase a minimum of 24 channels at a time, even if only a few of them are actually utilized. Alternatively, SIP Trunking technology can quickly reassign bandwidth to various locations when it is needed to handle higher call volume. As an entire virtual system, there is no need to purchase physical hardware that is only used during high-volume calls.

Studies indicate that SIP Trunking technology can save a business from 20% to 60% of what they are currently paying to manage and maintain TDM trunks. This can create substantial savings for businesses because the technology allows them to streamline their communication needs.

Is It Worth the Investment?

The best SIP providers offer a variety of pricing schemes that are flexible enough to adapt to any business situation. Companies can easily add capacity quickly and inexpensively. Nearly every SIP option can be retrofitted to an existing PBX system, where no new physical components need to be purchased.

SIP Trunking technology is a viable solution for nearly any business, especially those that handle excessive amounts of call traffic from single or multiple locations.


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