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Difference Between SIP Trucking vs. Hosted PBX?

SIP Trucking vs. Hosted PBX


SIP trucking and hosted PBX phone systems are the two underlying technologies that make voice-over-internet-protocol communications (VoIP) possible. A hosted PBX phone service is top-to-bottom handled in the cloud system. At the same time, SIP trucking requires you to host and maintain the equipment in your office. 

When you decide to use a virtual communication system for your business, you can make some considerations. Choose the right phone service provider wisely, and then, you have to sort through the available types of business phone systems. Because most of them use the acronym, it is difficult to determine.

The business needs to reduce the service cost undoubtedly but not on sacrificing the features and quality of phone service.

Both solutions (hosted PBX and VOIP) aim to free business from the traditional telecom operators and their expensive analog system. While they have the same function, they differ in financial, logistical, and technical abilities. 

What is a Hosted PBX?

PBX services by Internet Telephony Service Providers (ITSP). Only IP connectivity and Internet connection are required for businesses to start using VoIP communication. Also, users have access to their telephone system from any location, as long as they have access to the internet.

What is a SIP Trucking?

It is a system used to assign, transfer, and translate the data via an internet connection. It is often combined with VoIP to make the connections that are for voice calls.

For example, you can add additional channels or lines so that your business can make some calls or video chats at one time. “Trucking” refers to the network’s ability to handle multiple needs. It allows you to set the audio session or a video real-time between the two parties.

But SIP trucking takes this process a step further. It enables multiple communication channels simultaneously. Most service providers hosted SIP costs based on the number of SIP trunk’s usefulness of your business.

Critical Differences Between SIP Trucking and Hosted PBX Phone Systems?

There are critical differences between hosted PBX and SIP Trucking.

  • Flexibility

A hosted PBX solution will help employees access their phone systems and feature irrespective of their physical availability, as long as they have access to an internet connection. Phone software such as softphones and mobile applications will allow them to make and receive calls from any place worldwide by using a smart device or computer.

SIP trucking does not cost-effectively provide this feature. It will require you to pay for a third-party tool.

  • Scalability

Hosted PBX offers unlimited space for additional users because of web-based platforms that implement through a standard browser. 

SIP trucking solution can scale but in a limited way. The scale depends on both the local PBX capacity and businesses’ ability to buy more channels to cover all needs.

  • Technology Difference

Hosted PBX translates to significant cost savings because you do not need to hire a home VoIP technicians to troubleshoot your system. 

On your side, all work is done through an intuitive web-based admin portal. It allows you to view and report on the use of export. 

Because your SIP trucking solution involves multiple locally installed PBX equipment, you need to hire or train personnel to manage the telephone system and router. Technology continually evolves, so you may have to spend for people to level up repeatedly. Alternatively, the manufacturer or seller will stand in for him, which means you will need contract maintenance/support. In addition to this ITSP, problem-solving means you have access to the right support. Some providers will make you pay a fee per hour for help.

  • Operational Cost

Hosted PBX service providers provide a flexible package to clients on a monthly subscription model. You can expect a reasonably high return on investment with appropriate billing options, based on the number of users, features selected, and plans call. For example, Sher web will provide all of the features available with unlimited calling minutes and up to 300 simultaneous users. Are your employees get from an IP phone, web, or mobile applications, there is no extra charge for your continent’s calls. 

SIP trucking is different. We already know there is an annual fee that is large enough for the maintenance and support of your PBX equipment. Furthermore, SIP trucking comes with a per-channel pricing scheme single. Each channel allows users to make and receive a call simultaneously. Some service providers offer flat rates for the SIP channel per month, although some may provide you with a payment plan for a ‘per minute’ charge.

  • Hardware Setup cost

A hosted PBX phone System only requires a router and business-grade internet connection, plus the IP phone. Most businesses already have it, so they can start using the answer immediately.

However, if you choose SIP trucking, it poses a high upfront investment for installing and configuring your equipment on-premises PBX. Then, you have the costs associated with the SIP trucking service itself. Because best practices recommend a separate internet connection to achieve optimal performance for your call, you may need to spend more money just to set up the service.

How To Select The right Communication System?

Hosted PBX and SIP trucking, you can leverage the benefits of VoIP to change your business communication system into a competitive advantage. 

SIP trucking and hosted PBX are two popular methods for companies to make calls over the internet. However, they are very different technologies with their advantages and disadvantages. While SIP trucking is the right choice for larger teams that can support it, most smaller clothes would want to see a hosted PBX for cost savings and usability.

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