VoIP call rates

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11.04.2025
In the modern world where business communications play a key role in the companies' success, it is important to understand the different technologies underlying these communications. Two of these technologies that often cause confusion due to their interconnectedness are VoIP (Voice over Internet Protocol) and SIP (Session Initiation Protocol). Although these technologies are closely related and both are used to transmit voice communications over the internet, there are key differences between them. In this article, we will understand what VoIP and SIP are, clarify their key differences, and help you to determine which technology is best for your business.
  1. What is VoIP?
  2. What is SIP?
  3. What is the difference between VoIP and SIP?
  4. Which is better for your business?
  5. Conclusion

What is VoIP?

VoIP is an advanced technology that allows you to make phone calls using the internet instead of traditional telephone networks. This method is becoming increasingly popular among companies due to its efficiency, flexibility and many features.

How does VoIP work? 

Imagine that your voice signal is an email you want to send to a friend over the internet. Instead of sending it entirely, you break the letter into many small, encrypted parts. Over the internet, these pieces are quickly delivered to the friend, who puts them together and hears your message. VoIP works similarly: your voice is turned into data packets, sent over the internet and reconstructed at the other end, allowing you to communicate clearly and without delay over distance.

The benefits of VoIP include:

Types of VoIP systems include hosted and non-hosted solutions. Hosted VoIP assumes that all infrastructure and equipment is managed by the service provider, making this option more affordable and convenient for SMBs. Unplaced VoIP requires companies to own and maintain the equipment themselves, which may be preferable for larger organisations with specific telephony requirements.

What is SIP?

SIP is a standard signalling control protocol used to manage multimedia communications, including voice and video calls, over IP networks. SIP plays a key role in the world of Internet telephony, allowing users to initiate, modify and complete communication sessions.

How does SIP work?

Imagine you are arranging an online meeting for colleagues from different parts of the world. Using SIP telephony, you create a video conference that can be joined by participants via any device: smartphones, computers or tablets. SIP provides stable communication, clear picture and sound, while also allowing you to share files and text messages in real time. This turns your virtual meeting into an effective collaboration session where everyone can contribute as if they were all in the same room.

 Advantages of sip trunk include:

Types of SIP solutions can range from simple messaging applications to complex unified communications systems that integrate voice, video, data and mobile services. SIP solutions can be hosted on local enterprise servers or utilised in cloud services, providing flexibility and availability for a variety of business models.

The difference between VoIP and SIP?

A technology that allows voice calls to be made over the Internet.

A signalling control protocol for initiating, modifying and terminating interactive user sessions including video, voice, chat and multimedia.

Basic Function:

Usage:

Protocols:

Compatibility:

Communication types:

Application:

What's the best fit for your business?

The choice between VoIP and SIP for your business depends on your specific needs, scale of operations and communication purposes. It is important to realise that SIP is one component of VoIP, and often these terms are used in the context of offering a complete voice over internet solution. 

Conclusion

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