How SIP Trunking Works

SIP trunking blends connections for both data and voice into a single line. By serving as a converter between a legacy phone system and a company’s Internet connection, an SIP-trunking device allows the data network to carry voice traffic. SIP-trunking features typically include local and long-distance calling, E911, directory listing and caller ID, all of which integrate into a company’s existing phone system.

Here’s a hypothetical example of how SIP trunking works: A San Francisco-based sales representative places a long-distance call to a client based in New York City using a dialing prefix and the local-area phone number. The call either originates as an IP call or is converted to one before it leaves the office and then travels the majority of the way over the IP network of the service provider, then drops back down to the PSTN once it reaches its termination point. Since a sizable portion of the call traveled over the IP network at no additional cost rather than on the PSTN, the service provider can (and does) charge a mere fraction of what the traditional fee would be without the IP connection.

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