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What is SIP Trunking

SIP Trunking (session initiation protocol), is a voice over internet protocol (VoIP) that uses a data network or internet connection to connect business telephone systems to the telephone network. Unlike traditional telephony, where bundles of physical lines were once delivered from the Bell, Telus or Allstream to a business to deliver services, a SIP trunk allows a company to replace these traditional fixed lines. SIP trunks are delivered over an IP (Internet Protocol) network similar to the delivery of email, web services or other data applications.

Sip Trunk Concept

There are several “value drivers” that propel businesses towards SIP Trunking. One of the key drivers is cost reduction. Fundamentally, SIP Trunking means businesses can stop subscribing to multiple voice circuits, routing that traffic on their data network instead – resulting in significant savings on long distance and hardware costs.

Sip trunking provides companies with flexibility. Unlike traditional lines, SIP trunks allow telephone numbers to be terminated anywhere. This means you can publish a phone number in a remote market even if you do not have a physical presence there. For companies with multiple offices, you can now terminate all of your published telephone numbers to a single location, without incurring long distance charges.

SIP Trunking also allows organizations to centralize business continuity and disaster recovery. For instance, if the power goes down in one office, calls can be re-routed to another site without disrupting business.

There are a few things to consider when making the switch to SIP trunks.

  1. SIP trunks have opened an opportunity for many start-up companies to jump into the business of delivering voice services. While there are many companies that have made the investment to build a resilient network to deliver these services, there are many that have not. All services providers are not created equally when it comes to SIP trunks, so it’s critical to do your homework.
  2. The ROI on SIP Trunking is achieved by consolidating services such as internet, multisite networking and SIP trunks over the same access. This is the preferred deployment, but the access requires adequate bandwidth and QOS (Quality of Service). QOS is the ability to prioritize the different types of traffic on the access.  The most common forms of access are DSL, Wireless, T1 and Fibre. Determining the correct access is based on geographical location, bandwidth requirement, risk tolerance and budget.
  3. Some legacy telephone systems do not support SIP trunks and require gateways to convert the SIP trunks to traditional analog or digital service. These older systems may require additional investment in hardware, so it may be beneficial to investigate the cost of upgrading to an IP PBX that supports SIP trunks.
  4. Connecting a device to the Internet exposes the entire network to many types of threats, so security should be a consideration. Firewalls are used to protect you LAN, Firewalls inspect and log traffic and, if intelligent enough, they can even block suspected attacks including traffic from unknown sources.

In the U.S. SIP trunking is exploding and we’re going to see a similar adoption in Canada over the next few years.