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Blog Summary:
This blog compares VoIP (Voice over Internet Protocol) and SIP (Session Initiation Protocol), two technologies that enable Internet-based communication. VoIP is the broader technology for transmitting voice calls, while SIP is a signaling protocol that manages call setup and termination. Understanding their differences helps businesses choose the right solution for their communication needs, whether it’s a VoIP system or SIP-based infrastructure.
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Is your business one of the many struggling with outdated phone systems? Without modern telecommunication technology, dropped calls, faltering customer service, and scaling business communication will become costly challenges.
However, VoIP (Voice over Internet Protocol) and SIP (Session Initiation Protocol) can unlock a simple and cost-effective solution. Here’s how:
By implementing VoIP, you can instantly modernize your business communication, enabling seamless voice calls over the Internet. Meanwhile, SIP integrates video conferencing, messaging, and even CRM tools—all through the same Internet connection.
In the world of business communication, VoIP and SIP work hand-in-hand to craft a unified, scalable, and efficient solution. When apart, the VoIP vs SIP battle won’t produce a winner since SIP acts as the enabler that expands VoIP’s capabilities.
In this blog, we’ll explore how your business can harness SIP alongside VoIP to unlock a unified communication system tailored to the growing needs.
Voice over Internet Protocol (VoIP) is a telecommunication technology that allows voice and multimedia communication to be transmitted over the Internet.
It replaces the traditional phone line network, which uses Public-switched Telephone Networks (PSTN) to make calls over wired lines. Using the Internet connection to transmit voice data, VoIP enables voice and video communication with wireless transmission of data packets.
VoIP is of two types – hosted and non-hosted.
Under hosted VoIP, the service provider hosts and manages the phone system over the Internet. The phone system’s brain is located off-site in the service provider’s data center. Since the phone system resides in the cloud, it’s a great option for remote teams without needing any on-site setups.
Non-hosted VoIP is an on-premises setup that handles VoIP calls with an on-site server known as the Private Branch Exchange (PBX). Here, the phone system’s servers, software, and hardware are managed on-site.
Also known as self-hosted, this option allows you to use the Internet to make calls while also controlling and maintaining the system without paying monthly charges. This option is great for large businesses with dedicated IT teams and strict data control since it requires higher upfront costs of buying servers and hardware.
When a user calls using VoIP from an Internet-connected device, the device’s codecs capture audio frequencies. The codecs then turn these frequencies into data packets and send them through the Local Area Networks (LAN) router.
It further goes through the VoIP controller or Session Border Controller (SBC), which chooses where to send the data. It could be a PSTN endpoint, a local user network, or another VoIP user from anywhere in the world.
Let’s understand its detailed breakdown:
Here’s how we developed a VoIP calling software – Moon Dialer to make crystal clear calls worldwide.
VoIP has emerged as a highly efficient communication tool that allows businesses to leverage the Internet for better functionality and is considerably cheaper than traditional phone lines. VoIP is more secure than analog phone lines and keeps your business communications safe from hackers. Let’s understand its advantages:
VoIP is extremely scalable. It allows your business to add new phone lines when it plans to expand and grow. Your business doesn’t have to pay hardware costs or purchase dedicated phone lines. It is also easier to add new users accordingly.
VoIP makes large enterprises more approachable, offering advanced features such as auto attendant and call transferring. On the other hand, small businesses can utilize its multi-calling capabilities by signing up with a VoIP provider for separate conference calls.
VoIP allows you to port your virtual phone number, as it’s completely portable, even when you change your business address, travel a lot, or have remote teams. With dedicated VoIP phones, you can connect with customers worldwide and function even during outages.
VoIP is cheaper than traditional phones as it reduces expenses for making long-distance and global calls. Additionally, there is no expensive or bulky equipment, which eliminates IT maintenance costs because troubleshooting is digitally handled.
With many advanced features, VoIP is extremely accessible. It allows you to make business calls just with a decent Internet connection and a softphone app. Moreover, if no one answers calls, it’s easy to redirect them to another location or person and have voicemails emailed to you.
VoIP can be easily integrated with many third-party applications and business tools, such as email, HRM, and project management platforms. Businesses can also integrate VoIP with CRM for automated call logs for better customer interactions.
Say goodbye to traditional phone systems and switch to VoIP for reliable and high-quality calls.
Session Initiation Protocol (SIP) is an established set of rules that determine how data should be transmitted between devices. These rules ensure that communication sessions eliminate confusion by defining proper syntax, semantics, and standards.
It’s a digital coordinator for calls that starts, modifies, and terminates user sessions over the Internet. These sessions can involve any type of multimedia, such as audio, video, and text. Calls with SIP are divided into two phases: setting up a call and transferring data.
It is implemented in the application layer, which helps initiate calls with proxy servers. Once implemented, SIP ensures that the calls and voice data are transferred from one endpoint to another in a peer-to-peer (P2P) fashion.
SIP is important because it is one of the industry-standard protocols used in VoIP, along with TCP, HTTPS, etc. While other protocols carry the actual voice and calls, SIP dictates and handles how this transfer will take place and its portions.
In simple language, if VoIP communication is based on Internet language, SIP is the translator that makes each communication easy by connecting it with traditional phones. With SIP, you can also enable SIP trunking, an essential component for businesses looking to strengthen their VoIP system.
SIP and SIP trunking are often implemented together. While SIP enables VoIP calls, SIP trunking connects the phone system, known as IP PBX, to the PSTN.
Let’s understand how SIP works:
Once you have implemented SIP, you can set up SIP trunking. A SIP trunk is a virtual phone line made up of multiple flexible channels, each connected to a single call.
Once you make an outbound call from a SIP trunk, it connects multiple people within a business to make calls simultaneously using one of these channels. It helps you save infrastructure costs since your business can build a custom cloud application to add new phone lines without paying for them.
Here’s how you can set up a SIP trunk:
SIP is a useful platform for voice calls and many other types of multimedia communication, such as video conferencing and text messaging. Moreover, it is the most widely adopted and implemented protocol, making it compatible with many other platforms.
Let’s understand the advantages that make SIP versatile:
SIP systems utilize and adjust wideband audio codecs, bringing more crispness and clarity to calls by minimizing delays and jitters even with limited speeds. It captures a broad range of sound frequencies using VoIP and Quality of Service (QoS) to prioritize the transmission of data packets for smoother calls.
SIP requires no major capital investments, and businesses incur only minimal upfront costs while having the opportunity to choose the services they need. Since it doesn’t involve any hardware, businesses can work without worrying about it getting obsolete and earn handsome returns.
Businesses often require working with multiple software systems and have to train teams & maintain them separately. SIP enables them to build an integrated suite with a cloud-based Unified Communications as a Service (UCaaS), helping them access anything they need to increase productivity on a single platform.
SIP communication isn’t tied to a physical phone line or network and can work with any wired, wireless, or mobile connection. It allows businesses to call from anywhere and reduce downtime by switching to another network if one fails.
Compared to traditional phone systems, SIP systems are easier to maintain without any hardware or hiring someone to route calls. Adding new phone lines is also simpler by using SIP with VoIP, which can help businesses save up to 60% on costs.
Boost international communication with multi-channel voice, video, and messaging solutions.
VoIP and SIP are quite similar and often overlap, allowing organizations to build unified communication technologies. Unified methods can integrate with various business tools & cloud systems to share data and automate many administrative tasks. Let’s understand their similarities in detail;
The biggest similarity between VoIP and SIP is that the latter is one of the protocols that VoIP uses to transmit calls over the Internet. The technology they both use for communication is called SIP trunking, which enables businesses to enjoy the benefits of VoIP calls and maintain the reliability of phone systems.
Another huge similarity between the two, which can’t be understated, is that they both rely on Internet-based communication, making them reliable and cost-efficient for global operations. Compared to traditional phone lines, which use circuit switching, these technologies use packet switching technology over IP networks.
Both technologies convert analog voices into digital data, which reduces interference and makes them highly scalable. Without major infrastructure upgrades, they both allow organizations to add or remove users, reduce global call costs, and save hardware investments.
SIP extends VoIP’s capabilities and enables businesses to build a unified communications system where they can integrate voice, text, and video communications. Together, they automate workflows by integrating business tools like helpdesks, HRM, and CRM with call forwarding and conferencing features.
VoIP encompasses a range of technologies for internet-based voice communication, while SIP trunking serves as a specific protocol that elevates VoIP by enabling multimedia capabilities and enhanced flexibility. Recognizing the distinction between SIP trunking and VoIP is crucial for selecting the optimal solution to meet your business’s unique needs.
Let’s understand the factors that impact in detail:
| Factors | VoIP | SIP |
|---|---|---|
| Setup and Infrastructure |
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| Call structure |
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| Scalability |
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| Maintenance |
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| Total Cost of Ownership (TCO) |
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If your business is looking for cost-effective and easily deployed voice communication, VoIP is the ideal solution. However, if you are looking to build a strong communication backbone with not just voice but video calls, conferences, and texts, SIP should be your first choice.
Let’s understand which is better through the following example scenarios:
Suppose you have a small customer service team or have recently launched a startup. Then, VoIP should be your choice since your primary requirements are voice calls, call forwarding, and basic video conferencing. Here’s why:
Suppose you have a growing multinational company and are looking to build a fully integrated advanced communication system. Then, SIP will work best to help you build multi-channel communication that can be integrated with IP-PBX and other tools for international calls. Here’s why:
When evaluating VoIP and SIP costs, it’s important to understand that they work together but have distinct roles. Here’s a tentative but detailed comparative breakdown of estimated costs:
| Factors | Estimated VoIP Costs | Estimated SIP Costs |
|---|---|---|
| Setup and installation | Cloud VoIP per user – up to USD 100 | One-time SIP trunk – from USD 100 to USD 300 |
| Hardware and equipment |
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| Call plans | A flat rate of USD 20 – USD 30 per user per month |
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| Scalability | USD 20 – USD 30 per additional user per month | USD 15 – USD 25 per additional channel per month |
| Maintenance |
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| Total Cost of Ownership |
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Get the best of both worlds by building a SIP-enabled VoIP communication system at lower IT costs.
Are you seeking a reliable VoIP software development company that can help your business build a custom telecommunication system? Our experts at Moon Technolabs can help you develop a custom telecommunication system to address issues related to:
We simplify all workflows by unifying communication channels into a single platform by providing professional VoIP and SIP development services :
Connect with our experts to ensure smooth development and implementation, and elevate your communication systems effortlessly today!
Modern businesses need an integrated system that offers high-quality communication, seamless collaboration, and future-proof technology. Hence, they need a robust communication system that drives efficiency and growth.
The above discussion concludes that VoIP and SIP are powerful technologies that complement each other. While VoIP facilitates cost-effective voice communication over the Internet, SIP adds flexibility by supporting multiple channels like voice, video, and messaging.
Together, they solve the communication challenges of modern businesses by providing a scalable alternative to traditional phones. Now is the time to take action and craft a tailored VoIP-SIP solution to meet your business goals in today’s competitive landscape.
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Jayanti Katariya is the CEO of Moon Technolabs, a fast-growing IT solutions provider, with 18+ years of experience in the industry. Passionate about developing creative apps from a young age, he pursued an engineering degree to further this interest. Under his leadership, Moon Technolabs has helped numerous brands establish their online presence and he has also launched an invoicing software that assists businesses to streamline their financial operations.
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