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What is SIP Trunking and How Does it Work?

If you are business owner whose aim is to make profits and smartly reduce expenses, you may not have the in-depth knowledge about each facet of the industry as you are saddled with the responsibility of managing services such as payroll services, shipping services, and merchant services amongst others. SIP trunking can be an excellent choice for your brand. If you have been seeing fantastic reviews about SIP trunking and wanted to know more about its procedures before you reach out to the content providers, this post is for you as it will offer you a thorough understanding of what you need to know about SIP trunking.


Session Initiation Protocol, popularly known as SIP is the simple process by which you can make a voice over IP call. It is the application layer protocol utilized to establish real-time sessions of audio and video between two phones. In other words, SIP can be defined as the tool for the modification, creation and termination of sessions with one or more users in an IP network. It could either be a conference call or a two-way call setting.

SIP trunk is the computer-generated variety of an analog phone line. With the inclusion of SIP, a service provider can link about twenty channels to your PBX which will enable you to make international and local phone calls over the internet. The presence of an on-premises PBX in your business office will allow the SIP trunk provider to help you with a connection that will enable you to make outbound calls on your current system without limitations on the number of concurrent calls.


Your business needs determine the expense of SIP trunking. Moreover, the initial price for a one-time set up should not be more than $150 while the monthly payment for each trunk is valued between $25-50. Various SIP trunking providers like Digium have metered plans as well as channelized plans. Let us take a look at the differences between both programs here;

METERED SIP TRUNKING: This SIP trunking plan is the type that charges you for each minute of a call made from your system. It is an adaptable plan that ensures there is no restriction on the number of concurrent calls you can make. It enables business owners to add the call feature comfortably and pay for extra use of the service.

CHANNELIZED SIP TRUNKING: This is a prepaid plan that offers you the opportunity to make unlimited inbound, outbound, as well as long distance, calls on per channel/call source. Every channel is empowered to make or answer a single call; this plan has been done in a way that you will not be allowed to make extra calls once your channels have been filled. The only way to add channels to the existing ones is by informing your service provider, and this technique is the best way for business entities to control their expenses on phone calls.

With Cloudbnet's SIP, you can work how you want, where you want, whenever you want.

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