Difference Between SIP Trunking vs. Hosted PBX

Difference Between SIP Trunking vs. Hosted PBX

When deciding which virtual communication system to use for your business, you need to make some considerations. First, a provider that offers the correct Voice over Internet Protocol (VoIP) service. Then you need to sort out the types of business phone systems that are available. Since most of them describe abbreviations, it can be challenging to determine your reading.

Undoubtedly that many companies are trying to cut communication costs without sacrificing phone functionality and voice quality. There are two competing options when implementing Voice over IP (VoIP): Hosted PBX versus SIP trunking. Both solutions aim to free companies from traditional telecom operators and their expensive analog systems. Although they have similar functions, they differ in financial, logistical, and technical requirements. 

What is Hosted PBX?

Hosted headquarters eliminates the need for local PBX equipment. PBX services are by the Internet Telephony Service Provider (ITSP). To start a business with VoIP communications, all you need is an IP connection and an Internet connection. Users can also access their telephone system from anywhere provided they have access to the Internet.

What is SIP Trunking?

With SIP trunking, companies can continue to use their local hardware exchange and use the VoIP services provided by ITSP. A SIP highway is a direct virtual connection between two infrastructures.

Difference Between Hosted PBX vs. SIP Trunking

  • Cost

A hosted PBX solution requires only a router and a business connection to the Internet, and an IP phone. Most companies already have this, so they can start using the solution right away.

However, if you choose SIP trunking, it will require a large upfront investment to install and configure your local PBX equipment. Then you have the costs associated with the SIP trunking service itself. Since best practices recommend that you have a separate Internet connection for optimal call performance, it may cost you more money to set up the service.

  • Operational

Hosted PBX service providers offer flexible packages to customers on a monthly subscription model. With the right billing options, you can expect a relatively high return on investment based on the number of users, features selected, and calling plan. Whether your employees call from an IP phone, web app, or mobile app, there are no additional charges for all of your continental calls. The more features you activate (IVR, Voicemail, Fax to Email, etc.), the higher your return on investment and the more positive you will be for your productivity.

SIP trunking is different. We already know that there are significant annual maintenance fees for your PBX equipment. Furthermore, SIP trunking comes with a single pricing scheme for each channel. Each channel allows users to make and receive calls one call at a time. If your company needs at least 20 employees to contact simultaneously, you need 20 SIP channels to support all of them. Some service providers offer a flat rate per SIP line per month, but some may offer a per-minute billing plan.

  • Flexibility

With a hosted PBX solution, employees can access their telephone systems and functions wherever they are present, as long as they have an Internet connection. With cell phone software such as softphones and mobile applications, they can make and receive calls from all around the globe using their smart device or computer.

SIP trunking doesn’t offer this functionality at a low price. It requires you to pay for a third-party instrument.

  • Technical

Your hosted PBX service provider will handle all the technical challenges and problems that may arise. It translates into substantial cost savings as you don’t have to hire an in-house VoIP technician to wipe your system. Better yet, if you choose your supplier carefully, you may never have to deal with technical issues. For example, the redirection center hosted has built-in redundancy, so 99.999% availability is guaranteed. All routine activities can be performed via an intuitive web-based administration portal, allowing you to view and export usage reports. You don’t need to have VoIP experience for them.

Since your SIP trunking solution includes PBX devices installed locally, you will need to hire or train someone to operate the telephone system and router. Technology is continually evolving, so you may have to spend a lot of money to level up. Neither the manufacturer nor the seller stands up for this guy, which means you need a maintenance contract. On the ITSP side, troubleshooting implies that you have access to appropriate support. With some providers, you pay an hourly support fee.

  • Scalability

In our host comparison between PBX and SIP trunking, the scaling feature plays an important role.

Hosted PBX providers offer unlimited storage for custom add-ons. They provide you with a web-based platform that you can access with any standard browser. It allows you to perform routine tasks such as B. add new phone extensions in 1-2-3 easy steps.

SIP trunking solutions are scalable, but only to a limited extent. Scaling depends on the facility’s local capacity and the company’s ability to have more channels to meet all needs.


SIP trunking is useful for companies that already have their IP PBX phone system. Your home operator goes a step further and allows any business to take advantage of the power of SIP over VoIP. All you need is a compatible device.

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