SIP Trunking vs. VoIP: Which Is Better for Business?

VOIP service headset and business phone on desk


Communication plays a vital role in the success of a business. As such, it’s crucial to find a communication service that fits the needs of your business. For business owners who are interested in an internet protocol (IP) solution, there’s voice over internet protocol (VoIP) and session initiation protocol (SIP) trunking. VoIP and SIP trunking are cornerstones of IP telephony, but what are they and what’s the difference between SIP and VoIP?

What You Should Know About SIP Trunking vs. VoIP

Despite the telecommunication industry’s best efforts to simplify itself for the masses, certain terms can be confusing to anyone who isn’t a telecom expert. It certainly doesn’t help when terms are erroneously used interchangeably. The terms VoIP and SIP are good examples of this. Although both solutions provide features that save businesses money and help employees be more productive and efficient, they are far from being the same thing. 

Before we get into how each solution differs and which one is the best for your business, however, we should do a quick overview of what each service is. This will help provide context to understand the benefits both services provide.   

What Is VoIP?

Strictly speaking, VoIP is a technology that allows you to make phone calls over the internet. Calls can be made via your computer or through a VoIP-enabled phone. Depending on the type of service you have, it can allow you to make calls with others who use VoIP or allow you to call anyone. Examples of VoIP include Skype and Microsoft Teams. 

What Is SIP Trunking?

SIP stands for session initiation protocol and trunking stands for grouping. SIP is a communications protocol that’s commonly used for multimedia communication sessions. This solution allows employees to communicate via voice or video. It can also transmit information to multiple endpoints. Imagine having a video call with multiple coworkers. 

Hosted VoIP vs. SIP Trunking

Now that you know what each solution is, it’s time to talk about SIP versus VoIP. SIP trunking differs from VoIP in that SIP is designed to transmit digital packets, which could carry voice, data, or video. Simply put, SIP supports all forms of media, whereas VoIP only supports voice. Another big difference is the medium each solution uses to operate. 

A VoIP phone requires a computer to operate the software and connections. The equipment for a SIP trunk, on the other hand, can operate separately from the computer. As a result, SIP tends to be a more flexible option. Which one is best for your business depends on what you use your telecommunications for.

Get the Solution That’s Right for You

If you’re in the market for a new communications solution, let the experts at CCT Telecomm help. We carry SIP and IP phone solutions and we can implement the one that makes the most sense for your business. To learn more about how we can help your business, contact us today.


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