SIP Trunking vs. VoIP: How Do They Both Work?

Discover what’s behind SIP Trunking and VoIP and explore the pros and cons. Learn how they can help you save on costs. Choose the one that works for your business.

SIP Trunking


Main differences between
SIP Trunking vs. VoIP


SIP Trunking


Type of transmitted sessions

Apart from voice, it handles multimedia sessions such as video and text.

Handles voice, video, messaging communication channels, and more.


Can operate over the internet, also working with special types of networks VPN.

Can operate over the internet, also working with special types of networks VPN.

Call traffic

Designed to manage large amounts of traffic and data. You can also add an extra layer of security by getting a direct connection to your provider.

Handles traffic from a central network, where a provider oversees everything. This is perfect for businesses that do not have the experience or time to manage their own systems.


SIP-Compatible Phones or other internet-enabled devices, an internet connection.

SIP-Compatible Phones or other internet-enabled devices, an internet connection.

Best for

Companies that already have an IP PBX system or UCaaS communication tools without voice.

Companies without an IP PBX that want additional phone-system features, like routing and queuing.

Worst for

Small businesses with minimal call volume, businesses with unreliable internet connectivity, highly regulated industries with serious compliance requirements, businesses heavily dependent on legacy systems.

Companies requiring a high level of security, large-scale call centers, privacy-sensitive services, and businesses with limited budgets for development and maintenance.

What is SIP Trunking & How Does It Work?

Session Initiation Protocol (SIP) Trunking is a modern communication technology that facilitates the transmission of voice, video, and other multimedia services over the internet. 

Instead of relying on traditional phone lines, SIP Trunking uses the internet to establish and manage communication sessions. 

It converts voice signals into data packets, which are then transmitted over the internet to their destination.

What is VoIP
& how does it work?

VoIP is an acronym for a Voice over Internet Protocol, technology that converts your voice into digital data packets. Those are then transmitted over the internet, with no need for traditional phone lines. Once the data packets arrive at a recipient’s end, they transform back into voice signals. 

VoIP software is cost-effective, scalable, and offers a wide range of features. If you are seeking an efficient and affordable communication solution, it’s a great choice.


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Countries available



Security and data monitoring

Let’s talk about
pros and cons

SIP Trunking

Manage All Channels Within One Network

Cut out traditional phone lines and save on costs. Manage voice and data services over a single internet connection to reduce expenses associated with maintaining multiple lines.

Grow Freely Without Changing Hardware

Easily add or remove channels based on changing call volumes. This flexibility will help you manage your evolving business needs without extensive hardware changes.

Establish a Global Presence

Embrace cost-effective international calling and seamlessly communicate with clients all around the world while keeping a local presence. Build trusted relationships.

Stay Available During Outages

Maintain uninterrupted communication with SIP Trunking’s disaster recovery capabilities. SIP Trunking enables rapid call rerouting to alternative locations or mobile devices.

There May Be Security Risks

SIP Trunking may be susceptible to fraud, hacking, or eavesdropping. You must prioritize security protocols to protect sensitive communications and customer data.

Initial Setup May Be Complex

Implementing SIP Trunking requires you to configure your systems properly. You may need IT professionals which costs money and slows down your processes.

You Can Face Compatibility Challenges

SIP Trunking may not be compatible with all legacy phone systems. You can face additional costs and difficulties with integrating SIP Trunking into your infrastructure.


Save Money on International Calling 

Avoid expensive long-distance calling charges with features like International numbers and save both yours and customers’ money.

Embrace Freedom With a Remote-friendly Solution

Break down geographical barriers. VoIP lets you receive calls from anywhere with an internet connection. This possibility is invaluable for remote teams.

Adjust Your Calling Software As You Grow

VoIP adapts to your needs, no matter the size of your business. The highly scalable and adjustable software helps you grow seamlessly.

Optimize Workflows With Diverse Features

Get a diverse range of features whatever your stage of growth and make team collaboration easier. Optimize workflow and maintain meaningful interactions with clients and partners.

You Need a Reliable Internet Connection

Just like cloud-based software, VoIP relies on a stable internet connection. You may experience delays, packet loss, and reduced call quality.

Call Quality May Be Lacking

Depending on the provider, you can experience echo or latency issues during calls. It worsens the quality of communication and negatively impacts user experience.

You Can Face Security Threats

Depending on a provider, VoIP can be vulnerable to security threats and cyberattacks like hacking, eavesdropping, and other malicious activities.


What is the difference between SIP Trunking and VoIP?

SIP Trunking and VoIP are related yet distinct technologies. VoIP (Voice over Internet Protocol) refers to the broader concept of transmitting voice over the internet, while SIP (Session Initiation Protocol) Trunking is a specific method within VoIP that facilitates the connection between a business phone system and the public telephone network.

Do I need a SIP Trunking for VoIP?

Yes, if your business aims for seamless integration with the traditional phone network while leveraging the benefits of VoIP, a SIP trunk is essential. It acts as the gateway, facilitating communication between your VoIP system and external telephone lines.

What is the difference between SIP server and VoIP server?

A SIP server and a VoIP server serve distinct functions in the realm of communication technology. A SIP server specifically handles the initiation, modification, and termination of SIP sessions. A VoIP server is a broader term encompassing various protocols and technologies facilitating voice communication over the internet.

CloudTalk is a data-driven solution for exceptional customer experience and intelligence is a key part of it.

Schedule a demo today and find out for yourself.