What is SIP Calling, and How Does It Make Communications Easier?

What is SIP Calling?

From marketing mistakes to excessive outsourcing and unnecessary meetings, small businesses waste significant money every year. If you’re looking for ways to cut costs around your office without sacrificing the quality of service you provide, you may be trying to answer what is SIP? 

Simple telecom swaps can result in considerable savings for your business. One easy and proven way to reduce needless spending and boost your office’s efficiency is to switch from a traditional office phone system to SIP calling.

SIP is an acronym, and it stands for Session Initiation Protocol. In the most basic terms, it is the process of transmitting voice calls over a SIP trunk. This technology works along with VoIP (Voice Over Internet Protocol) in phone systems. 

A traditional or legacy phone system consists of two parts. First, the PBX, which is responsible for call management features like voicemail and call transfer. Second are the PRI lines, which connect calls to the PSTN (Public Switched Telephone Network). The PSTN is responsible for routing each one of the calls to its destination.

There is no need for a regular, physical connection to a phone company with SIP and no need for multiple phone lines either. Instead, a SIP trunk (or a virtual phone line) installs over your current internet connection. The trunk allows you to bypass PRI lines and connect to the PSTN via the internet.

Related: SIP Trunking 101: The Fundamentals

Benefits of SIP Calling

There are several reasons why SIP phone systems are the way of the future. An excellent way to answer what is SIP calling comes with several benefits it offers for your business, including the ones listed below.

SIP trunking is grabbing the attention of businesses everywhere. Transparency Market Research forecasts the global market for SIP trunking services could grow at a 13% annual rate until 2030 and reach a market value of US$ 35.5 billion. What impact does this technology have on the way companies communicate?  


In addition to basic call setup, a SIP phone system performs several other VoIP functions, such as:

  • Identifying user location
  • Determining user availability
  • Negotiating media capabilities
  • Session setup and management (transferring and terminating calls, adding 3-way conferences, etc.)
  • Enabling instant messages, multimedia conferences, user presence information and enhanced 911 emergency calls

Combining all these features helps cut down on your need for different devices and makes it easier for employees and customers to stay in touch.


One of the biggest reasons people ask IT or telcom providers to define SIP is that switching to SIP calling can result in massive savings for businesses — up to 40 percent on local calls and up to 90 percent on international calls.

There are a few different ways you can accomplish these budget reductions:

  • Elimination of hardware purchases, installation and maintenance costs
  • No more multiple subscription fees
  • Getting rid of various networks
  • Turning all calls into local calls (thus, providing huge savings on international calls)

You will also get an almost instant return on investment with the best SIP phone system because of the low setup costs. You can additionally eliminate many of the expenses associated with a traditional phone setting.

Leading providers even offer free SIP trunks for testing; no credit card information is necessary. To start your free trial, you can just complete a series of brief online steps on their website and you’re done.


Understanding what SIP calling is can be a challenge on its own, but it can become even more complex if you try to think about how it can support a growing company. 

With legacy infrastructures, adding more telephone lines, waiting for the installation of those lines and making room for extra equipment can really eat into your bottom line.

It’s incredibly frustrating to buy additional phone lines because you can usually purchase them in groups of 23. This means you often have to get more than (and spend more than) what you actually need.

With SIP calling, you buy one channel at a time and only when you need it. You don’t have to make guesses about future needs, and you don’t have any extra equipment lying around gathering dust.

It’s also easy to access new carrier services like call recording and voice analytics and upgrade your system as needed.

Related: SIP: Benefits for Business Communications


You might think it will be too difficult to figure out what is SIP calling and implement it in your office. In reality, though, it’s pretty easy to install. You can do all maintenance through a simple online control panel.

If you are worried about training your staff to use a SIP phone system, keep in mind SIP calling consolidates all your communication needs into one device. Everyone will only need to be trained on one system instead of several, simplifying the process and ensuring all your staff is on the same page.

Easy maintenance

There’s also less maintenance with a SIP phone system. There are several tools available to efficiently monitor and resolve issues within minutes.

SIP trunking providers can also quickly reroute services, either to a redundant data line or mobile phones, so your business doesn’t suffer downtime consequences.

Better sound quality

Some business owners worry about learning what is SIP calling and how switching to this technology could decrease the sound quality of their calls. This definitely is not the case, though.

The best systems utilize wideband audio or HD voice to extend the frequency range and double the sample rate of telephone audio. This means it’s easier to distinguish between syllables and clearly understand the person on the other line.

Call stability

When you outfit your office with a SIP phone system, you make yourself more available to customers than ever. With SIP trunking, you can reroute calls automatically from your phone to another extension or an employee’s mobile phone.

It’s easy to take your business on the road with you, and you will never have to worry about losing a sale because you were unreachable.

Who Should Use SIP Calling?

Small businesses and startups love SIP trunking because of the savings and flexibility the systems present. But, they are not the only ones who can benefit from a SIP phone system.

Some large businesses are hesitant to jump on the VoIP and SIP bandwagon. Maybe they are worried about implementing a new system or just don’t see how they can benefit. No business is ever too large to stop caring about wasted resources.

There are several other reasons for large businesses to consider switching to a SIP phone system, including the following:

  • Time management and data-gathering tools
  • Accessible and straightforward internal calling
  • Better contact with international clients
  • Ability to work anywhere there is an internet connection
  • Unified communications to let you easily combine technologies and platforms

Enterprises with large phone systems have more to gain than they have to lose by switching systems.

H2: Get a SIP Phone System Today

According to The VoIP Report, 42% of firms were sending 100% of their traffic over SIP trunks in 2018. Additionally, 50% of U.S. business exchange lines were SIP-based in 2019. Clearly, SIP is here to stay.

If you’re ready to take the leap and try a SIP phone system in your office, partner with a true industry leader who can help. Fill out SIP.US’s simple online form today. You will have a free SIP trunk account in less than 60 seconds! Get started now.

Free SIP Trunk in 60 Seconds

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