IF YOU’RE in the market for a VoIP phone service for your business, it’s likely that you’ve come across two choices from some service providers: hosted private branch exchange (PBX) and session initiated protocol (SIP) trunking. They are very similar but have one primary difference that makes them better suited for different uses a hosted PBX VoIP phone system is hosted at your service provider, but a SIP trunking places the PBX at your business.
The primary advantage of a hosted PBX is that there’s no hardware to purchase or install. Our VoIP phone service provider will provide and maintain all of the equipment needed to connect you, other than your phones themselves, so your initial costs are much lower. Instead, users pay a monthly subscription fee per extension. This makes a hosted PBX an economical option for small businesses. Setup is also very easy – just connect your phones with an ethernet cable and manage your call routing settings online.
SIP trunking is a combination of voice over IP (VoIP) protocol and streaming media services, which are based on the session initiated protocol (SIP). Where VoIP transmits your voice as data over the internet, replacing the need for traditional phone lines, SIP delivers unified communications that combine voice, video, and other streaming services like screen sharing and web conferencing. SIP trunking is what eliminates the need for a physical connection to your phone company – it’s installed virtually on your business’ internet connection, replacing the need for traditional phone lines.
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