what is a sip trunk used for

What Is a SIP Trunk Used For? A Beginner’s Guide

What a SIP Trunk Is Used For: Let’s Review Some Basics.

Small businesses waste significant amounts of money because of marketing mistakes, excessive outsourcing, and unnecessary meetings every year. One other reason is inefficient telecom infrastructures. When your clients face this challenge and you’re trying to help them reduce costs throughout their offices, you may be trying to answer what is a SIP trunk used for? 

The use of more modern telecom strategies for their companies can result in substantial savings. By replacing traditional phone systems with SIP trunks, you can enable them to cut unnecessary expenses and enhance their communication efficiency.

It could be helpful for you to explain to them that SIP is an acronym, and it stands for Session Initiation Protocol. In its simplest form, it is the process of transmitting voice conversations over a SIP trunk. This technology integrates into phone systems alongside VoIP (Voice Over Internet Protocol). 

SIP could be an excellent way for your customers to address several telecom issues. But what is a SIP trunk used for, anyway? This is the main topic of this guide, so read on to learn about SIP trunking and why it is an attractive solution.

What Is SIP Trunking?

SIP trunking is a business communications alternative to traditional PBX phone lines.

Unlike PBX systems, which connect you to an endpoint through a series of phone lines, SIP hooks up to your preexisting Wi-Fi network. You can place and terminate calls over this virtual network.

Along with being a PBX replacement, SIP trunking is an alternative to an Integrated Services Digital Network (ISDN). However, unlike with ISDN services, your clients won’t need to pay for voice and data separately when they use SIP.

In addition to calling an endpoint and sending voice data, SIP also serves to share media, place video calls, send documents like PDFs and JPEG files, and even connect your customers’ fax machines.

Related: How to Explain the Difference Between VoIP and SIP Servers

What Are the Main Benefits of SIP?

SIP trunking is grabbing the attention of businesses everywhere. According to research, the global SIP trunking market will grow at an annual rate of 13% until 2030 and reach a market value of $35.5 billion. Because SIP is such a reliable service, it offers several benefits.

First off, it can save your business a lot of money. SIP installation and bills are both inexpensive. There also is no hardware involved with SIP, which means you won’t need to pay for any hardware maintenance. Any issues you may encounter with your SIP trunks can be easily fixed on your customer’s network.

Additionally, SIP boosts productivity. As this guide touched on before, communications directly over Wi-Fi provide little opportunity for garbled speech, call dropping, and long intervals where you miss what the other person is saying. As such, your customers’ employees won’t need to waste time placing the same calls repeatedly. They will also save everyone a lot of frustration.

SIP add-ons exist to make your customers’ employee’s lives easier. These add-ons include caller ID, fax to email technologies, call data records, business SMS, number porting, and many more.

Your clients can also access SIP (and its add-ons) from multiple devices. While some of them will likely use these services primarily from their desk phones and computers, they can also access them from business laptops and smartphones. SIP is a great way to access communications technology anywhere.

How Does It Work?

To grasp how SIP trunking works and better explain it to your prospects, it’s essential to understand what Voice over Internet Protocol (VoIP) means.

If you’ve used Facetime before, then you’re already familiar with VoIP, even if you’ve never heard the term. VoIP is a protocol initiated by SIP. You use VoIP to interface with your endpoint. It’s the medium through which you place calls.

SIP initiates the functions of your VoIP interface. It breaks your voice down into small bits of information your VoIP software sends to an endpoint.

Think of SIP as a sort of highway. VoIP is the car you use to reach your destination.

Related: What is a SIP Line and Why You Should Be Selling Them?

What Is a SIP Trunk Used For?

As you may already know, a SIP trunk isn’t a physical object.

In fact, there’s no hardware at all involved in SIP communications. It’s a type of software that’s installed directly onto your network.

Simply put, a SIP trunk is a medium to execute SIP trunking processes. SIP trunks are installed onto your business’s Internet framework and are used for connecting people’s voice transfers over VoIP software.

How Many SIP Trunks Do You Need?

Your customers must install the correct number of SIP trunks onto their network.

Too few trunks can result in dropped and distorted calls as too many people call over one SIP trunk. However, too many SIP trunks are a waste of money.

A good rule of thumb is to use a 1:1 SIP trunk to employee ratio for small businesses. This is because everyone will likely be placing calls simultaneously at these organizations, which makes it essential to have enough SIP trunks to accommodate.

On the other hand, larger businesses with over 100 people are likely to make calls at more staggered intervals. This means they only need a 3:1 SIP trunk to employee ratio.

What Is SIP Reselling?

Up until this point, we’ve been focusing on the ways using SIP benefits your customers. However, there’s another way you can potentially reap the benefits of SIP for your tech or telco consulting business: reselling SIP trunks.

If your business already works in technology, buying inexpensive SIP trunks from an industry leader and selling them at a higher cost is a logical expansion of your existing repertoire. Nevertheless, even if your business sells something totally unrelated, SIP resale is a great way to diversify your portfolio.

All you’ll need to do is reach out to potential SIP clients and tell them about the benefits of SIP trunking you’ve learned here today. Clients will be happy to take advantage of these features, and they may build a sense of brand loyalty to you. This will make them more likely to utilize your other services when they need them.

In Conclusion, What Is a SIP Trunk Used For?

In the most basic terms, SIP trunking is a network-based communications alternative to PBX that can really streamline your business. It’s also a great tool to add to your resale repertoire and diversify your portfolio quickly.

Now that you know what SIP is and all of its benefits, it’s time to start reselling SIP trunks. SIPTRUNK helps your customers get a SIP trunking service for IP-PBX systems and analog/digital gateways. You can use it with your client’s current Internet connection, and it will support any SIP-compliant device, including VoIP systems, SIP softphones, analog telephone adapters, or T1 gateways. 

It is easy and quick to install a SIP trunk, and it includes a free trial that offers up to 60 minutes of calling so you can ensure everything works as planned. SIPTRUNK provides your customers with a simple, powerful online control panel to enable them to easily manage their telephone numbers and SIP trunks. Get started today.

Ready to Start SIP Trunking?

SIPTRUNK is the ideal SIP trunking provider for agents, dealers, VARs, manufacturers, distributors, master agents, and IT consultants looking to build a monthly recurring revenue stream selling SIP trunks.