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October 24, 2026 · 7 min read

What is SIP trunking? How it works and when to use it

SIP trunking connects your business phone system to the phone network over the internet. Learn how channels, pricing models and setup work.

SIP trunking is a way to connect a business phone system (PBX) to the public telephone network over an IP connection instead of traditional phone lines. A SIP trunk is a virtual set of phone lines delivered by a provider, and each simultaneous call uses one channel.

How SIP trunking works

Your PBX talks to the provider using the Session Initiation Protocol (SIP). When someone dials out, the PBX asks the provider to place the call, and the provider connects it to the regular phone network. Incoming calls take the reverse path. The voice itself travels as IP packets over your internet or a private link.

SIP trunking vs PRI and analog lines

SIP trunkPRI / ISDNAnalog lines
ConnectionIP networkDedicated digital circuitCopper pair per line
ScalingAdd or remove channelsFixed blocks of channelsOne line at a time
NeedsBandwidth, PBX with SIPPRI card and circuitLine per call
Geographic flexibilityHighLowLow

What are channels?

A channel is one simultaneous call. If you rarely have more than 12 calls at once, 12 channels may be enough even if you have 50 employees. To size this properly, use traffic data and our Erlang calculator, which estimates how many lines you need for a target blocking rate.

Pricing models you will see

  • Per channel: a flat monthly fee for each concurrent call path
  • Metered: you pay per minute used
  • Bundles: a channel count with included minutes

Prices vary by provider and region, so compare current quotes rather than relying on averages.

What you need before you switch

  • A PBX or IP-PBX that supports SIP trunks
  • Enough upload and download bandwidth for peak calls (see the bandwidth calculator)
  • A properly configured firewall or session border controller
  • A plan for number porting and emergency calling
  • A backup path such as failover routing to a mobile number
Reliability tipSIP trunks depend on your internet connection. Many businesses add a second internet link or call forwarding failover so an outage does not stop inbound calls.

If you do not have a PBX yet, a cloud phone system may be simpler than SIP trunking, because the provider hosts the PBX for you.

Frequently asked questions

How many SIP trunk channels do I need?

Count your peak simultaneous calls, then add a margin. An Erlang B calculation based on call volume and call length gives a more reliable number.

Can SIP trunking replace my existing phone lines?

In most cases yes, provided your PBX supports SIP and your network has enough bandwidth.

Is SIP trunking the same as VoIP?

SIP trunking is one way to deliver VoIP. It specifically connects a PBX to the phone network.

Size your phone lines before you buy.

Free calculators for lines, agents and bandwidth.

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