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What is SIP Trunking?
Everything You Need to Know

This page is designed to help you gain an understanding of what SIP Trunking is and how you might use it. At a high-level SIP Trunking is a product to connect your on-prem PBX service with telephone network infrastructure.

What is a SIP Trunk?

A SIP Trunk is a service you would be looking for to connect your business phone system to the switched telephone network PSTN (Public switched telephone network). To do this, a SIP Trunk uses SIP (session initiation protocol) through the internet to connect to a SIP trunk provider, enabling phone calls using Voice over Internet Protocol and potentially additional services such as unified communications.


  1. Cost Savings: SIP trunking can reduce the cost of traditional phone lines.

  2. Scalability: SIP trunking allows for a flexible and scalable option for businesses of any size.
  3. Multiple Lines: A single SIP trunk can replace multiple traditional phone lines.

  4. Unified Communications: SIP trunking allows for unified communications, such as video conferencing, instant messaging, and voice calls.

  5. Quality of Service: SIP trunking ensures the quality of service by providing reliable VoIP connections.

  6. Security: SIP trunking offers encryption, authentication, and other security measures to protect data.

  7. Easy Management: With SIP trunking, businesses can easily manage their VoIP system.

How Does SIP Trunking Work?

SIP Trunking is a voice-over-internet protocol (VoIP) technology that uses the Session Initiation Protocol (SIP) to enable external communications. It is a cost-effective way for businesses to make and receive phone calls over an internet connection.


SIP trunking eliminates the need for an organization to have an on-site PBX phone system, as all communication is handled through the provider’s network. Organizations will need a high-speed internet connection and a VoIP-ready PBX phone system to set up SIP trunking.


In addition, they will need to purchase a SIP trunking service from a provider. The provider will then set up the SIP trunking service and configure it with the organization’s PBX phone system. The provider will also provide the organization with a SIP address, which is used to direct outgoing and incoming calls. Finally, the provider will provide the organization with a set of SIP credentials, which are used to authenticate the calls.

What is SIP Trunking Generally Used For?

Typically, SIP is leveraged by businesses to connect their phone system to the public telephone service and assist with cost, quality and reliability.


It enables businesses to make and receive calls over the internet, eliminating the need for physical phone lines. It is also a great way to save money by taking advantage of VoIP technology, which is generally much cheaper than traditional phone lines.


Additionally, SIP trunking can provide businesses with increased scalability and flexibility, allowing them to quickly and easily add or remove lines as needed.

Finally, SIP trunking can improve the quality of voice communications, providing businesses with a reliable and secure connection.

SIP vs VoIP: What's the Difference?

SIP trunking is a type of voice-over-IP (VoIP) technology that is used to facilitate communication between two points that are connected to the internet. It provides a means of delivering telephone services over a broadband network.


VoIP, on the other hand, is a type of technology that enables users to make and receive phone calls over the internet. VoIP uses packet-switched telephony, while SIP trunking is a specific type of VoIP delivery method.

Can You Use SIP and VoIP Together?

Yes, in fact, most SIP trunks will be used to deliver VoIP to enable concurrent calls. This is the fundamental sip trunking technology.


VoIP is typically used by end users and is generally configured on an end device such as a Mobile phone app, computer application or an IP Handset.

SIP Trunks are generally configured inside a PBX or business phone system.

What is a SIP Provider?

A SIP provider is a type of internet telephony service provider that uses SIP technology to connect customers to their services. SIP providers are often used by businesses to provide IP telephony services and other forms of Voice over Internet Protocol (VoIP) services.


These services allow customers to make and receive calls over the internet, eliminating the need for a physical phone line. Some SIP providers offer other services such as instant messaging, video conferencing, and multimedia collaboration.

SIP providers are becoming increasingly popular as businesses continue to embrace cloud-based services. A SIP Trunking Provider should offer both SIP trunks and in-dials connected to the public switched telephone network, as well as a value-added service that sits on top of the sip trunk.

What is a SIP Provider?

The Australian market for SIP trunk services is competitive, and you will find almost all internet service providers and traditional telecommunications providers have an offering for this. Sip Trunking providers are not created equal – some companies (like Simple Telecom) specialise in a subset of products and may offer better quality and better pricing than the market.


Make sure the provider you are assessing has a set of functionality included with the sip trunks that meet your business requirements.

Real-time data

Lead enrichment and tracking is the process of adding additional information to leads in order to better target and track them. The art of learning to track leads is a core competency of any good sales person. This additional information can include contact information, demographics, interests, behaviour data, and even key metrics such as budget and stage in the sales process. By enriching leads, businesses can more effectively target and track their marketing and sales efforts leading to more leads for their sales teams.


Lead qualification, or lead grading, is the process of determining whether a lead is ready to be passed on to sales. This process usually includes some sort of scoring system, wherein leads are given a score based on certain criteria that indicate how likely they are to close a deal. The criteria used to score leads can vary depending on the company, but may include factors such as the lead’s budget, authority, need, and timeline.


Lead distribution is the process of distributing leads among salespeople in an organisation. The goal of lead distribution is to ensure that each salesperson has a fair opportunity to follow up on leads and convert them into sales.


Lead nurturing is the process of developing relationships with buyers at every stage of the sales funnel, and delivering the information and resources they need to move down the funnel.



This is achieved by regular yet natural engagement with the buyer. Reminding them of your offering in a subtle way, build relationship, be patient and present a great deal at an appropriate time.

What are the Pros and Cons of SIP Trunking?

Weighing up the Pros and Cons of SIP Trunking is pretty straightforward. Let’s unpack each side of the product with a few key points for you to consider before you select a sip trunking provider.

What are the Benefits of SIP Trunking?

  • – Major price advantages

  • – A feature generally only limited by your on-premise PBX

  • – Not limited geographic

  • – Modernise legacy equipment using VoIP gateways

  • – Replaces landline provider

Are There Any Downsides to SIP Trunking?

  • – Complexity in setting up the sip channel

  • – Requires existing equipment to function or a modern IP PBX

How Much Does SIP Trunking Cost?

The cost of this product varies between providers but generally, there are two different factors that affect the pricing.


  1. The number of channels (concurrent calls) that you require

  2. The call rates (per minute) for calls through the sip trunk.

There are no free sip trunk providers as there are hard costs associated with making PSTN calls through to other carriers.

Affordable SIP Trunking with Simple1300

Simple 1300 Numbers offers a SIP Trunk product that you can consider. It is a very affordable service that will suit your small business:

Home$5 per month110 cents *Untimed*10 cents per MinuteORDER
Business$29 per month1+untimeduntimedORDER
Premium$55 per month20+untimeduntimedORDER

Frequently Asked Questions About SIP in Australia

The number of concurrent calls for sip trunks from Simple 1300 Numbers will be in line with the number of SIP channels you have organised for the service. This could be 1 or it could be 10+ – it’s up to you.

Ideally with QoS enabled, I would specify 1mbit/1mbit up/down for each channel.

Again this can vary between providers, but the term Cloud typically means there is an abstraction layer between the hardware and the supplier, so it provides a higher level of redundancy for the carrier (often at the cost of complexity and more technical security considerations).


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