Business Phone System

What Are SIP Phones & How Do They Work?

Thinking about switching from your traditional phone system to something more modern? If you’ve heard terms like SIP phones, SIP trunking, and VoIP but find them a bit puzzling, you’re not alone. These concepts are central to the world of internet-based calling, offering a fresh take on communication that can transform how businesses connect.

In this guide, we’ll dive into what SIP phones are, how they work, and why they might be the game-changer your business needs. We’ll also explore the nuts and bolts of SIP, understand its benefits, and see how it differs from the broader concept of VoIP.

What is SIP ?

SIP stands for Session Initiation Protocol. In plain terms, it’s a method that allows voice and video calls, along with messaging, to run over the internet instead of through conventional phone lines. This is part of the larger VoIP (Voice over Internet Protocol) landscape, which revolutionizes how we communicate in the business world.

SIP’s main job is to manage how these internet-based calls and sessions start, proceed, and end. It’s about turning your typical phone interactions — like making a call — into something that can happen online. This system is designed to work seamlessly with a variety of devices and software, enhancing communication in today’s digital age.

What about SIP trunking?

SIP trunking is a term you might encounter when exploring internet-based phone systems. It’s essentially a way for businesses to send voice and video calls over the internet by connecting their phone system to the standard public telephone network, but through the internet.

This process involves an SIP server managing the call setup, routing, and termination of sessions over the IP network. It removes the need for traditional telephone lines, offering a bridge between old and new ways of calling.

What are SIP phones?

SIP phones are devices that, contrary to traditional phones, use the internet to facilitate calls, thanks to SIP technology. They’re not just limited to making phone calls; they can handle video conferencing, send instant messaging, and share files, too.

Types of SIP phones.

1) Physical SIP phones

First, there are the hardware SIP phones that look like the desk phones we’re all familiar with, but they’re equipped to handle internet calls.

These digital-enabled desk phones often come with advanced features like high-definition voice quality, large color displays, and customizable buttons for various functions, enhancing the user experience and meeting the multifaceted demands of today’s communication needs.

SIP desk phones are often better in office environments where reliable connections, high-quality audio, and ease of use are important.

With features like programmable buttons and headset support, they’re user-friendly for frequent callers. Plus, being dedicated devices, they can be more secure against hacking compared to software on personal devices.

2) Software SIP phones

Then there are softphones, which are software-based VoIP phones installed on devices like smartphones, tablets, or desktop computers.

Businesses like softphones because they are easy to use and can save money. They let you talk to people anywhere as long as you have an internet connection. This is great for people who work from home or companies with offices in different places.

Setting up a softphone is easy. Just download the app and put in your VoIP account info. Since there’s no need for actual phone hardware, it’s a smart choice for businesses that want to keep things simple and save on costs.

SIP phone vs. VoIP phone

SIP phones and VoIP phones (or IP) often get lumped together, but they have their distinctions, even though both operate over the internet.

SIP phones, as we’ve discussed, specifically use the Session Initiation Protocol to manage communication. This means they can handle not just voice calls but also multimedia communication like video calls, messaging, and file sharing. SIP technology is versatile and integrates easily with various communication platforms and services.

VoIP phones, on the other hand, refer more broadly to phones that use Internet Protocol to send and receive voice data. This is a wider category that includes SIP phones, VoIP phones, and other systems that might use different protocols for voice communication over the internet.

The main difference comes down to the range of features and the specific protocols they support. SIP phones offer a wide array of communication functionalities beyond traditional calling, thanks to the SIP’s ability to manage multimedia sessions.

An VoIP phone, while also advanced and capable of providing high-quality voice communication, may not always support the same range of services as SIP phones, especially if they don’t use the SIP protocol.

Features of SIP phones

  • Call Management: SIP phones provide functionalities like high-definition voice calling over the internet, enabling clear conversations. Users can transfer calls to other devices or colleagues seamlessly, place calls on hold with music or messages for the caller, utilize automatic redial for missed connections, and block calls from unwanted numbers.
  • Multimedia Communication: Beyond voice calls, SIP phones support video calls, enabling face-to-face interactions with colleagues or clients. They also facilitate conference calls for group discussions and instant messaging for real-time text communication, enhancing collaboration.
  • User Availability and Control: Features like caller ID help users identify incoming calls before answering. The ‘Do Not Disturb’ function allows users to avoid interruptions, directing incoming calls to voicemail or a preset message, while speed dial shortcuts offer quick access to frequently contacted numbers.
  • Message Management: Voicemail capabilities enable users to record, store, and retrieve voice messages, ensuring no important information is missed. Instant messaging complements this by allowing quick, text-based exchanges.
  • Security and Compliance: Call recording is essential for documenting conversations, which can be useful for training, legal compliance, or quality assurance. Enhanced security measures, including encryption and secure authentication, protect against unauthorized access and ensure communication privacy.
  • Organizational Integration: SIP phones can integrate with directory services, facilitating easy access to a corporate contact list. Intercom and paging functions allow for efficient broadcasting to multiple devices within an organization, streamlining internal communication.

Benefits of using an SIP phone system

SIP (Session Initiation Protocol) phone systems offer a range of benefits that make them an attractive choice for businesses of all sizes. These benefits stem from the system’s use of internet protocols to facilitate communication, providing a versatile, reliable, and cost-effective solution. Here’s an organized overview of the key advantages:

Cost-effectiveness

SIP services reduce monthly phone bills by using internet or third-party IP networks, eliminating the need for traditional line rentals and additional wiring.

Bundling options with devices like headsets or cordless phones can offer further savings.

SIP systems are more affordable and easier to maintain compared to traditional PBX solutions, requiring no third-party service providers or significant hardware investments.

Enhanced business continuity

Allows employees to communicate seamlessly from any location with internet access, particularly vital during unforeseen closures or crises.

Maintains smooth business operations, ensuring responsiveness to customer needs regardless of physical office availability.

Scalability and flexibility

Easily adjusts to business growth, allowing for quick addition or removal of lines without substantial infrastructure changes.

Supports a range of VoIP functions and features such as call forwarding, waiting, voicemail, user location identification, and media negotiation.

Accommodates changing business sizes or customer bases without complex system overhauls.

Advanced features and integration

Offers features not commonly found in traditional systems, including video conferencing, instant messaging, call recording, and detailed analytics.

Integrates with existing business applications like CRM systems, enhancing workflow efficiency and data accessibility.

Mobility and reliability

Ensures reliable business communications using broadband connections and VoIP technology, less prone to call drops and traditional telephony limitations.

Empowers modern work styles by enabling employees to use their business number from any device, promoting remote work and hot-desking.

Sound quality and zero maintenance

Utilizes HD voice technology to provide superior sound quality, with encrypted and compressed calls for clearer audio.

Cloud-based infrastructure minimizes the need for on-site equipment and maintenance, with service providers managing technology updates and system upkeep.

User-friendly and easy maintenance

Easier to set up than traditional PBX systems.

Designed for ease of use, allowing remote configuration and management by IT professionals.

Centralized tools for monitoring and troubleshooting streamline maintenance, reducing the need for extensive on-site hardware setup.

Choosing between a physical SIP phone and software solutions

Choosing between a physical SIP phone and a software-based solution depends on your business needs, budget, and working environment.

Physical SIP desk phones

Choose a SIP phone for traditional office environments, large enterprises, and organizations with complex communication needs that require reliable, high-quality, and secure voice and video calls. If you want a classic conference room phone, go for a physical SIP device.

Advantages:

  • Dedicated device ensures reliability and quality for voice and video calls.
  • Familiar desk phone experience with advanced features like HD voice, programmable buttons, and direct headset connection.
  • Generally more secure, as they can be configured and managed by IT teams to control security settings and updates.

Disadvantages:

  • Higher initial cost due to hardware investment.
  • Less flexible in terms of mobility; tied to the physical location of the phone.
  • Requires physical space and infrastructure like Ethernet cabling.

Software-based solutions (VoIP & call center apps)

Software-based business phone systems like JustCall will be better for startups, small & medium businesses, remote teams, and dynamic companies needing flexible, scalable, and integrated communication solutions.

Advantages:

  • Cost-effective, with no need for physical hardware other than the existing computer or mobile device.
  • Highly flexible and mobile, allowing users to make and receive calls from anywhere with an internet connection.
  • Often offers a whole suite of tools: calls get recorded for easy review and training and detailed call analytics help you optimize performance.
  • Easy to integrate with other business applications, enhancing productivity and streamlining workflows.

Disadvantages:

  • Dependent on the host device’s performance and stability; can be affected by other running applications.
  • Call quality can vary based on the internet connection and device capabilities.

Making the choice

  • Consider Your Environment: If your team is office-based and prefers traditional phone systems, physical SIP phones might be the better choice. For a dynamic or remote workforce, software-based solutions offer greater flexibility.
  • Assess Your Needs: Evaluate what features are most important to your business. If you need advanced call management, robust security, and high-quality audio, a physical SIP phone might be more suitable. If mobility, cost savings, and easy integration with business apps are priorities, a softphone could be the better option.
  • Budget Considerations: Determine your budget for immediate and long-term costs. Physical phones have a higher upfront cost but may offer more durability and less frequent need for replacements. Software solutions might seem more budget-friendly initially but consider the potential costs of licenses, updates, and support.

Ultimately, the choice between a physical SIP phone and a VoIP provider should align with your business objectives, operational needs, and budget constraints. You may even find that a hybrid approach, utilizing both types of SIP phones, provides the flexibility and functionality to meet your business’s communication demands.

Now, let’s explore some top desk phone options if that’s what you’re interested in. After that, we’ll offer some tips for selecting the right software service.

Best SIP desk phones for large companies

Large companies often look for the most advanced options out there. So here are a few top-of-the-line SIP phones. Their drawback? They don’t come cheap.

  • Yealink IP Phone T57W
  • Yealink IP Phone VP59
  • Cisco IP Phone 8861
  • Poly Trio C60 IP Conference Phone

Entry-level SIP phone for small companies

Finally, if you’re looking for something cheap and reliable, here’s something for you.

  • Yealink IP Phone T31W

Choosing JustCall — a software-based SIP phone service

What if you want something more flexible than a desk SIP phone? Or something more budget-friendly than the top devices, but packed with more features than the cheaper, low-end ones?

JustCall is a cloud-based phone system designed for startups, small to medium-sized businesses, and remote teams. It offers a versatile set of communication tools, including voice calls, video calls, and SMS messaging.

Key features

  • Integrated Communication: Manage calls, texts, and CRM activities all on one platform, streamlining customer relationship management.
  • Global Reach: Local phone numbers in over 70 countries help establish an international presence without a physical office.
  • Automation and Efficiency: Features like auto-dialing and call routing optimize workflow and reduce manual work.
  • Analytics and Reporting: Gain insights into call metrics to inform staffing and training decisions.
  • Scalability: Easily scales with your business growth without significant upfront costs.

When you should opt for JustCall

  • Remote or Hybrid Teams: Ideal for teams that need to operate from various locations.
  • Flexibility Needs: No physical hardware requirement allows for easy adjustments and scalability.
  • Tool Integration: Automates and synchronizes with CRM systems, enhancing productivity.
  • Cost Savings: More budget-friendly than a desk phone system, especially for startups and small businesses.
  • Global Operations: Facilitates a local presence internationally with local phone numbers in various countries.

Conclusion 

A reliable and modern phone system can be your ultimate competitive advantage when competition is high across the board. Move forward to SIP trunking deployment and tap on all the powerful features of VoIP phone solution.

Sign up for JustCall today and try our 14-day free trial. Or simply book a free demo, and we’ll walk you through your to-be-phone system!

Frequently Asked Questions

How many calls can I make simultaneously with a SIP phone system?

With a SIP phone system, you can make several calls at once. This system uses channels, with each channel capable of handling two concurrent calls (one incoming and one outgoing). The total number of calls you can make at any given time depends on how many channels your system has.

This setup offers great flexibility, allowing you to scale up or down based on your business needs, covering both outbound and inbound calls.

Is investing in a SIP phone system beneficial?

Yes, investing in a SIP phone system is highly beneficial. It offers advanced features that are not typically available with traditional phone services, allowing you to elevate your business communication with minimal investment.

A SIP system not only enhances call quality but also provides scalability, flexibility, and cost-efficiency, making it a valuable asset for any business.

What call quality can I expect from SIP phone systems?

Call quality with SIP phone systems is generally superior and depends on the speed and reliability of your internet connection. Thanks to HD voice technology, calls made through SIP systems are clearer and more distinct compared to traditional phone lines. This ensures that you can enjoy high-quality audio, making your communications more effective and professional.

What's the difference between SIP and IP phones?

The main difference between SIP and IP phones is that while all SIP phones are a type of IP phone, not all IP phones use the SIP protocol. SIP phones specifically use the Session Initiation Protocol to manage calls, which allows them to have more features and better compatibility with other communication devices that also use SIP.

With a foundational role at Saas Labs, Anand has been a key player in establishing the Product Management function and spearheading the launch of our Conversation Intelligence solution. His expertise in AI innovation guides both the strategic direction of the products and a team committed to excellence.

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