Hosted VoIP vs SIP Trunking

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Session Initiation Protocol (SIP) trunking is a methodology used to connect a Voice over Internet Protocol (VoIP) network to the Public Switched Telephone Network (PSTN).

SIP trunks are the physical or virtual IP connections from carriers to customers; the proverbial IP version of traditional Primary Rate Interface (PRIs) that connect to your company's call routing system.

SIP trunking assumes an existing VoIP infrastructure is in place and customers only require transport via the internet. SIP trunking environments rely on additional customer premise equipment (CPE) to register individual phone numbers and provide calling features (such as call waiting, call forwarding, call parking, etc.)

SIP trunks connect to a customer's IP PBX or an Integrated Access Device (IAD) that handles SIP to Time-Division Multiplexing (TDM) conversions.

SIP trunking also provides a higher level of business continuity / disaster recovery because SIP networks can be programmed to route calls around failed circuits or equipment; a previously daunting task with TDM and PRIs.

The process of SIP is near identical to HTTP; voice traffic is delivered via digital format using Real Time Protocol (RTP). The RTP packets include quality information; indicating if they are arriving too slow, too fast, out of sequence or any other abnormalities. IT managers utilize RTP packet quality information to optimize segments of your network that could be responsible for service degradation of any kind (echoing, call drops, etc).

Hosted VoIP for Business includes:

  • Connectivity to the internet - VoIP requires a connection to the internet.
  • VoIP hardware (IP Phones & Servers) - your service provider will lease or provide equipment pricing that is necessary to complete your business's individual configuration.
  • Phone calling features - such as voicemail, caller ID, call waiting, call etc.  All of the major options you have grown to expect when you are working with a business phone system.
  • Complete user licensing - software needed to operate business class phone systems require a per seat licensing agreement with the standard terms of use and service.
  • Phone registrations - all phones within a VoIP network must connect with a VoIP server to exchange information about your business and configure the proper settings for each user.
  • Direct Inward Dialing (DID) / phone numbers - your service provider with supply your company with a range of phone numbers and extensions and will associate them with one or more main numbers, such as an 800#.


Hosted VoIP providers also configure and support VoIP hardware; an option best suited for businesses considering VoIP service but do not have or wish to invest in a VoIP infrastructure.


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We are a group of engineers and architects solely focused on business class telecommunications and systems integrations. Many of us hold certified credentials from companies such as Cisco, Microsoft and Citrix while others are passionate about telecommunications with decades of combined professional expertise. Our obsession for telecom was the catalyst behind BusinessVoIPExperts.com and the opportunity to aid organizations with successful VoIP deployments through our proven methodologies brought this community site to life. From criticism to kudos or simply networking with other telecom professionals, we would be honored to hear from you.
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