Hosted PBX Providers Vs. SIP Trunk Providers

When setting up VOIP in your enterprise, there is always this mental turmoil regarding the usage of SIP Trunk lines or Hosted PBX systems. Before you actually decide which choice to make, it is essential to find out what exactly these terms are related to and what are the pros and cons of each of the two options.

SIP Trunk Line Providers

Session Initial Protocol (SIP) trunk lines are the alternatives to the use of PSTN. The implementation of this channel allows the use of existing PSTN based phone channel with internet based VOIP technology. The use of this technology does not call for the replacement of long-running copper wires with internet lines for communication. The traditional phone systems can be connected with an ATA. This device is used to convert analog signals to digital during outgoing calls and digital to analog during incoming calls.

When associating SIP trunk lines with the POTS lines, business enterprises have to maintain an on-premise PBX system at their office. Though the use of SIP reduces calling costs, yet the implementation of this premise based system incurs considerable capital and operational expenses. Moreover, the enhancements in technology need to be constantly upgraded to the existing system. These enhancements may be in the form of software or hardware and thus, call for extra expenditure.

Hosted PBX Providers

This is more of a concept rather than a system since it exists remotely and the client does not have to set up anything at his office. Hosted PBX providers rent the functionality of this massive system to cater to the needs of the small and medium scale business enterprises that cannot afford the implementation of on-premise system. The users generally require a reliable internet connection with good speed and communication medium.

You can have three business phone options for implementation hosted telecommunication interface for channeling your calls. However, it does not mean that it requires additional expenditure. The phone choice can be made according to the following types of requirements:

– If your business does not require the use of internet and PCs, the best option is to connect the internet lines with Hosted PBX VOIP phones. Here, you will have to invest a small amount in this system.

– If you have PCs running all over your enterprise and internet usage is unavoidable, there is no need of any additional equipment. Soft phones can be downloaded on PC, settings can be configured and calls can be made.

– For mobile taskforce working from remote areas, the calls can be made and received through mobile phones as well. Hosted PBX providers provide mobile dialer that can be used on phones supporting 3G or Wi-Fi internet and the calling can be done from there.

Which one to choose?

Whether a Hosted PBX provider or SIP trunk provider is beneficial for your business can be determined only after analysis of the current requirements and the expected rate of growth. Before taking this decision, the following questions should be answered:

– What are your initial requirements in terms of number of phone extensions, phone numbers required and the budget that you are planning for this change?

– What are the features that you want in your business phone system?

– What is the expected future growth?

– Are you sure to stay at your present office location?

For business organizations that have small requirements and low budget along with doubt about their office location, Hosted PBX services can be a feasible choice. For those who have to start off with small requirements but plan to expand soon, the best option is to take hosted services for a small time and then purchase on-premise system with SIP lines. For those who aim big at the start, an on-premise PBX connected with SIP lines seems to be the best choice.


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