IP Trunking vs. Sip Trunking: What’s the Difference?

With speed being the new currency, fast transmission of data has become incredibly important in our businesses today. So much that SIP trunking services are expected to a 12.7 billion dollar industry by 2023 with an annual compound rate of 10.7%.

Understanding how to integrate data transmission systems in your business in an effort to increase its value is crucial to your business. When looking through cloud-based transmission systems, you are likely to encounter IP trunking and SIP trunking more than a few times.

It’s even more confusing when you are new to VoIP trunking. Don’t worry because this blog post will go through trunking and what SIP and IP trunking have to offer your business.

So continue reading to know the differences between the two.


Trunking is a data transmission method used by many users at the same time by sharing multiple frequencies.

Imagine listening to a radio, your neighbor would hear the same music if they switched to that same station. And the next person and so on. You all get to share the same frequency and enjoy music.

In the same way, your business and others get to transmit data at unbelievable speeds but have to share the main transporting unit.

I know IP, SIP, and VoIP might sound the same to you. Here is a quick definition.

  • IP- Internet Protocol
  • SIP- Session Initiation Protocol
  • VoIP- Voice over Internet Protocol

It’s important to note that SIP trunking and IP trunking are not alternatives. Ideally, there is no SIP trunking vs. IP trunking. That being said, we will analyze features of both protocols and then compare them against one another

Also, VoIP and IP trunking can be used interchangeably.

IP Trunking

Now, Internet Protocol might sound all techy complex but it’s actually a simple concept. It basically refers to the transmission of data over the internet. And when the data is in voice form, it is referred to as VoIP.

On the contrary, Plain Old Telephone Service transmits voice data over electrical signals. You can either subscribe to have your IP stored in the cloud or house it yourself. Make sure to have an IT team for this.

IP trunking may not be an alternative to SIP trunking but it can replace a Private Branch Exchange System.

The Benefits of IP Trunking

The benefits are:

  • VoIP trunking has proven to efficiently save on network connectivity cost
    Work environments that have used IP trunking have reported a reduction in monthly bills by 20-30%. Those funds could be going useful in another aspect of your business.
  • The fluid flow of work and lower risk. Easy mobility which significantly improves employee productivity
  • One can quickly add and remove phone lines from the system making it easy for you to manage your client records.

Potential Derailers of IP Trunking

These include:

  • Quality of service can only be assured when there is full connectivity of data. In case of a slow network crisis, the business can suffer a lot.
  • All handsets could be affected in case of a power outage. 
  • Connectivity to a public network can also affect the workings of IP trunking.
    SIP Trunking

In multimedia communications, SIP trunking has become an essential tool. It’s important to note that SIP trunking is used as a support to VoIP telephony services in the cloud or with an in house IT team.

SIP trunking is taken in by IP trunking through a Session Border Controller. It can be used as an alternative to voice transmission methods like Time Division Multiplexing.

Benefits of Integrating SIP Trunking in Phone Service Subscription

  • The best thing with SIP is that it can support a wide range of media types. Therefore, it is a worthy investment in your business. Having to subscribe to numerous support systems can be quite draining.
  • Influenced by the above feature, SIP trunking is open standard which makes it work seamlessly well with other platforms.
  • SIP trunking can support simultaneous multiple data transmission.

Challenges that Might Come Along SIP Trunking

  • As hinted above, SIP network trunks have the ability to handle a lot within a short period of time. This indicates that they have numerous logical paths in their systems. Finding a SIP specialist can be pretty difficult.
  • The other challenge is that even though SIP is considered open standard, you will still find some expectations in their features. 

SIP Trunking vs. IP Trunking

It’s important to understand this bit. IP calls are made over the internet. And it is SIP trunking that makes these calls happen. Also, it handles multimedia sessions.

One of the main differences between the two is that VoIP only transmits data that is invoice form. SIP, on the other hand, has the ability to transmit data over multiple media platforms.

An IP call happens solely over the private internet network but SIP network trunks can transmit data across any network. Use of public networks can derail the connectivity.

Also, note VoIP trunking requires a computer for its operation whereas SIP trunking services can be used separately.

SIP trunking services are ideal for you if you handle sensitive data. This is because the protocol is stored in the in house phone exchange. For extra security, you can link it directly to your network provider.

On the other hand, VoIP calls are controlled by an external source. They do so in a central location that controls the traffic. Well, for sensitive data then this can be an insecure option.

It also means that if there is an error in their systems then your business suffers too.

Data Transmission Systems

As you might have discovered by now is that IP and SIP trunking services are not really alternatives to each other and neither are they the same thing.

If your organizations are looking forward to introducing cloud-based communication tools. Then you should definitely consider methods like SIP trunking.

For more information on new phone systems, check out these blog posts.