voip telephony

An Overview of VoIP Telephony (and How It Relates to SIP)

Modern businesses need a SIP Trunk to extend their traditional phone system into the Cloud using VoIP telephony.

If that sentence makes no sense then this article is a must-read!

VoIP technology offers low-cost, high-quality communications via the Internet. U.S. VoIP business lines increased by 570% over the past ten years. It has now surpassed traditional phone lines as the new way to send and receive calls.

But most companies aren’t aware of how VoIP systems work. The term business SIP trunk has little or no meaning or that they require a SIP service provider.

This guide gives a simple overview of VoIP telephony and SIP Trunking service providers.

We break things down and discuss the benefits of VoIP. Read on to discover how your company can make big savings and add new features to your business communications.

What Is VoIP Telephony?

The old Public Switched Telephone Network (PSTN) used to manage everyone’s calls through analog, copper lines. It relied on the caller’s phone being attached to one end and the receiver’s to the other. Simple A-to-B links.

But what if you need to work remotely? What if you require additional phones but only have one line?

Voice over Internet Protocol or VoIP replaces the traditional way phone calls and communications are made.

Using an existing Internet connection, VoIP sends your voice as packets of information at lightning speed. These arrive with the intended receiver and special software converts the data back into speech!

Many countries are ending the old-style PSTN system in favor of VoIP.

For example, the UK is withdrawing PSTN and ISDN in the next five years. That means if your current system relies on wholesale line rental it won’t work come 2026.

So what are the major benefits VoIP brings and why the big change?

Major Benefits of VoIP

This list could stretch forever so we’ve highlighted some of the top benefits that should apply to you.

Lower Cost Calls

According to FinancesOnline.com, your business can save 40% on local calls by switching to VoIP. And if you communicate with customers or suppliers outside of the country those savings can reach 90%!

The cost reductions continue with lower conference calls and multiple users using one connection. You will also make time savings as setting up VoIP is much easier.

Remote Workforce

As many employees need to work from home it’s essential they are able to communicate with each other.

Because VoIP works on any Internet connection you can use it on a home WiFi or a mobile signal. Staff don’t even need a separate phone. They can move to a different location if they wish and everything continues to work.

Additional Features

VoIP is far more than just making phone calls.

Because it’s digital, VoIP adds lots of extra facilities like voice messaging and call forwarding. You can also conference call and record your conversations.

Auto-attendant adds a menu system to your incoming calls. You have full control over the set-up and it brings a professional touch to your brand.

What Is SIP Trunking?

So far we’ve discussed VoIP but what about SIP Trunking?

SIP stands for Session Initiation Protocol. It’s a phrase to describe the service that routes and manages VoIP traffic.

The Trunk part relates to a telecommunications term describing a bundle of phone lines.

SIP handles all data being passed between your company’s private telephone network and the Internet. Technically that’s not multiple phone lines but the term is still used.

What Are PBX and IP PBX?

Your private telephone network has an official title: Private Brand Exchange or PBX.

Traditionally PBX worked with digital services like ISDN and analog lines. They had their own branded telephones and could route calls between departments.

Then PBX got an upgrade.

As VoIP is an Internet service, IP PBX offers the same functionality but does so through a company’s Intranet. Wireless calls are now achievable whereas old PBX got stuck with physical line limitations.

SIP Trunks and IP PBX

An incoming call from your customer is carried out online using VoIP software. That call is routed through a SIP Trunk but where does it go from there?

Your company’s private IP PBX accepts the call and takes over. It redirects it to the correct computer or VoIP enabled phone and waits for a response.

If you’re confused, don’t worry. We have a great Blog article on SIP Trunks vs PBX and the difference between them.

What’s a SIP Trunk Service Provider?

SIP service providers manage the exchange of information to and from your business.

They provide call plans that best suit your requirements. If you need additional lines or channels, the provider initializes and manages them.

Service providers cater to multiple industries such as:

  • Contact Centers
  • Hotels and Hospitality
  • Local Governments
  • Medical Practices

Even nonprofits can benefit from SIP Trunk and VoIP telephony.

The savings those businesses make using Cloud technology can be put back into their cashflow. The increased flexibility and additional features better assist the communities that they serve.

SIP Trunk Services

At SIP.US we offer a great range of SIP Trunk services that far surpass other providers. They include:

  • Powerful Control Panel – manage all aspects of your account including adding new phone numbers.
  • Real-time Data – view Call Data Records (CDRs) from any period including live calls.
  • Bring Your Own Bandwidth – use any ISP to manage your broadband. We don’t insist on using ours.

View a full list of all our SIP services and see how they can benefit you. We also offer a no-obligation free trial which includes 60 minutes of free calls!

A SIP Trunk Provider You Can Trust

By now you should understand a little more about VoIP telephony. You’re aware of terms like SIP Trunk service providers and how your business can send and receive calls.

We also looked at some of the benefits of VoIP technology, the main being lower costs. But what SIP service provider should you trust to offer the best savings and functionality?

SIP.US offers low-cost, flexible, and reliable SIP trunk services.

If your company wants the best SIP trunking service provider then look no further. We are so dedicated to SIP solutions we included it in our name!

Talk to the experts today. Start your FREE SIP Trunk account within 60 seconds and start to make great savings.

Our unlimited rate plans and powerful control panel are trusted by businesses since 2007. Join us to start making your communications work better for you.

Free SIP Trunk in 60 Seconds

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