SIP Trunking vs. Traditional Phone Lines: What’s the Difference?

Dynamic businesses of today require modern solutions that enable them to scale their operations, reduce costs and increase profit. Communication systems often form the backbone of a company's ability to reach customers and transfer information effectively both internally and externally. While many businesses still operate on traditional phone lines, SIP Trunking is a modern communication system that streamlines calls for teams of any size.

What Is SIP Trunking?

Session Initiation Protocol (SIP) is a type of Voice over Internet Protocol (VoIP) system that bypasses traditional phone lines by connecting to the internet. Since calls are transmitted and received via the internet, businesses of any size can scale their communication systems with a flexible solution. SIP Trunking also integrates seamlessly with Private Branch Exchange (PBX) and VoIP systems, allowing businesses to enhance internal and external communications without needing to overhaul their existing infrastructure.

Why Is It Called Trunking?

Imagine the branches of a tree, starting at the trunk and branching out to increase its reach. SIP Trunking works very similarly. The industry refers to it as trunking because, instead of dedicating a line to each person, SIP combines multiple channels into a single connection.

What Are the Benefits of SIP Trunking?

SIP Trunking is a modern solution that simplifies business communication. SIP Trunking benefits compared to traditional phone lines include:

Lower Rates

Traditional phone systems often consist of multiple lines that require expensive hardware, maintenance and monthly service fees. SIP Trunking has reduced infrastructure needs since it operates over existing internet connections. It often offers unlimited calling plans and eliminates the need for multiple phone lines, enabling businesses to lower communication costs while improving quality.

Improved Reliability

SIP Trunking enables enhanced business continuity through redundancy, such as using multiple carriers and redirecting incoming calls in the event of disruptions. Unlike traditional phone lines, SIP Trunking maintains connections during natural disasters or infrastructure failures — events that can cause outages and downtime for traditional lines.

Seamless Expansion

Business expansion is essential, and with SIP Trunking, a business's communication capacity can be scaled accordingly. Adjusting communication channels is as simple as adding or removing lines to meet the specific needs of your business.

System Integration

While traditional phone lines are stand-alone systems incapable of integrating with new and existing tools, SIP Trunking offers seamless integration with both existing business systems and other modern communication technologies.

Call Quality

Dynamic businesses cannot afford to sacrifice call quality to save costs. With SIP Trunking, companies can rely on clear communication with high-definition voice quality. Voice traffic also takes priority over other internet data to further enhance the quality of calls.

What Is a PSTN?

A Public Switched Telephone Network (PSTN) is a global connection of traditional landlines, using physical circuits that consist of copper wires for phone calls. Since traditional phone lines are decades old, businesses that still operate on these systems often encounter issues related to call quality.

SIP Trunking vs. PSTN

When deciding between a PSTN and SIP Trunking, start with your business needs. Since communication systems are often pivotal in a business's success, here is what to consider during deliberations:

Operational Business Factors to Consider

Assess the following factors to determine whether your business would benefit from switching over to SIP Trunking from traditional phone lines:

• Business size: If your business is larger and has existing PBX systems, switching to SIP Trunking would be beneficial. Smaller enterprises may be apprehensive about the startup costs, but could also benefit from SIP Trunking if more traditional systems cannot meet their growing communication needs.
• Call volume: Businesses of any size would save costs with SIP Trunking if they experience large call volumes.
• Technical expertise: Setting up and maintaining SIP Trunking often requires a higher level of technical knowledge than traditional phone lines.
• Scalability needs: While not every business requires an expansion of its communication capacity, SIP Trunking streamlines scalability. New channels require simple configuration, rather than installing hardware.

Side-by-Side Comparison

Take a look at the direct comparison between traditional phone lines and SIP Trunking below:

When to Choose SIP Trunking

Considering all operational factors, your business's communication expansion needs will also influence your decision. Take the following factors into account to decide when to switch from traditional telephony to SIP Trunking:

• International reach: SIP Trunking allows businesses to expand into global markets. Establish your business in multiple countries and grow your local presence with dedicated phone numbers for each location.
• Team collaboration: By providing a unified communication platform, businesses that use SIP Trunking benefit from streamlined collaboration across teams in different locations. Teams can also communicate across various platforms while using other communication tools, such as video conferencing and instant messaging.
• Customer service: SIP Trunking also allows your customer service representatives to manage higher call volumes. Calls made through SIP Trunking systems are of higher quality and more reliable than those made with traditional telephones, resulting in an improved customer experience.

Why Replace Traditional Phone Lines?

While many businesses still use traditional phone systems, modern communication requirements often highlight the shortcomings of conventional telephony:

• Lower-quality calls: Traditional infrastructure often experiences unstable connections due to faulty hardware or wiring, resulting in poor call quality. Poor connection can also lead to dropped calls, negatively impacting customer satisfaction.
• Costly maintenance: Traditional phone lines have been around for decades, which is why many are outdated. Bringing hardware up to scratch is often expensive and logistically complex, which is why many modern businesses move away from these systems.
• Limited features and mobility: In most cases, telephone systems lack the modern communication features that businesses require, such as video conferencing and call forwarding. Additionally, these systems present mobility issues that can be challenging for remote teams who need to make and receive calls away from the office.

How to Overcome Transitional Challenges

Switching from traditional phone lines to SIP Trunking can be seamless when you work with the right provider. Here are ways your business can mitigate challenges during the transition:

• Seamless integration: If your company operates on outdated systems, you may need to invest in additional equipment when switching to SIP Trunking. Most existing PBX systems are compatible with modern VoIP solutions.
• Network quality: Since SIP Trunking relies on an internet connection, ensuring you have high-quality broadband will reduce latency and interference. SIP Trunking uses redundant connections, which further minimize downtime.
• Protection protocols: Select a system provider that guarantees FCC compliance and encryption to safeguard your business against cyberattacks. Work with your provider to implement firewalls and other security protocols, such as multifactor authentication (MFA), to enhance your security.

Bolster Your Business Communication

Assess your business's communication setup against your growth needs. When you are ready, take the following steps to improve your call systems:

• Audit your current phone setup: Determine whether your existing system operates at your desired level.
• Get a free quote from a SIP provider: Contact the ACS experts to explore the tailored communication solutions for your business.
• Assess your internet connectivity needs: When switching over to SIP Trunking, you require a stable and reliable broadband connection. Consult with a trusted SIP provider to determine your specific needs.

Based on these benefits, it is no longer a question of whether SIP Trunking is better — it's whether your business can afford not to switch.