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Technology Explanation By Alex Morgan · March 2026 · 8 min read

What is SIP Trunking? A Plain-English Explanation for Business Owners

SIP trunking confuses a lot of business owners because the terminology is technical. Here's a plain-English explanation of what it is, when to use it, and how much it costs.

📞 What is SIP Trunking?

A SIP trunk is a virtual phone line that runs over your internet connection. Instead of plugging physical telephone cables into a wall socket connected to BT's network, SIP trunks send your calls as data packets over your broadband.

The "SIP" stands for Session Initiation Protocol — the technical standard that controls how voice calls start, connect and end over IP networks. The "trunk" is an old telecoms term for a group of lines (traditionally a bundle of phone lines connecting an office PBX to the public network).

🔄 SIP Trunk vs Hosted VoIP — What's the Difference?

This is where most people get confused. Both use the internet to make calls, but they work differently:

SIP TrunksHosted VoIP
What you provideYour own on-premise PBX hardwareNothing — it's all in the cloud
Monthly cost per channel£3–£8£10–£20/user
Setup complexityHigh (PBX config required)Low (plug and play)
Best forBusinesses with existing PBXNew setups or PSTN migration
Hardware requiredIP-compatible PBXIP phones or softphones only
ScalabilityAdd channels manuallyAdd users instantly

🎯 When Does SIP Trunking Make Sense?

  • You already have a working on-premise PBX (Avaya, Cisco, Panasonic, NEC) that you want to keep. SIP trunks replace your ISDN lines without replacing the whole system.
  • You have high call volumes where per-channel pricing is cheaper than per-user hosted VoIP.
  • You need PSTN migration ahead of the 2027 switch-off but aren't ready to replace your PBX yet.
  • Your PBX has features (complex hunt groups, operator consoles) that would be costly to replicate in hosted VoIP.

💷 SIP Trunk Pricing in the UK

ChannelsMonthly CostIncluded Minutes
2 channels£15–£25Unlimited UK calls
5 channels£30–£50Unlimited UK calls
10 channels£55–£90Unlimited UK calls
20 channels£100–£160Unlimited UK calls + CLI routing

A "channel" = one simultaneous call. For most offices, you need roughly 1 channel per 3–4 users for typical call patterns.

🔧 Will SIP Trunks Work with My Existing PBX?

Most modern IP-capable PBX systems support SIP. However, if your PBX was installed before 2010, it may not support SIP without an adapter (ISDN gateway). Before ordering SIP trunks, confirm with your PBX supplier or installer that the system is SIP-compatible.

Telexico provides SIP trunks for businesses across the UK, with number porting included. Get a quote in 24 hours.

Get SIP Trunk Quote →