SIP Trunking vs Hosted VoIP

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Every business replacing phone service reaches this fork. The honest answer: hosted VoIP (UCaaS) is right for most businesses, SIP trunking is right for a specific minority — and knowing which you’re in saves thousands.

The one-sentence difference

SIP trunking delivers dial tone over the internet to the phone system you already own; hosted VoIP moves the phone system itself to the provider’s cloud, and you just attach phones and apps.

Side by side

FactorSIP trunkingHosted VoIP (UCaaS)
Keep existing PBX✅ Yes — that’s the point❌ Replaced
Upfront costLow (keep hardware)Phones only (or BYOD)
Ongoing costPer concurrent channel ($10–25)Per user ($15–45, features included)
New featuresLimited by your PBX’s ageAuto-shipped (AI, transcriptions, apps)
Mobile/remote appsRarely includedStandard
MaintenanceYour PBX, your problemProvider’s problem
Control/complianceMax (on-prem recording, routing)Provider-configured
Failure modeTrunks fail → PBX failsProvider handles resiliency

Choose SIP trunking when…

The providers we quote most for trunks: Sangoma (own hardware + FreePBX ecosystem), TPx (fully managed), AireSpring (value, multi-site).

Choose hosted VoIP when…

Start with the UCaaS rankings and hosted PBX picks.

The math that decides it

Model three years, both ways, including: PBX maintenance and end-of-life refresh (SIP path) vs per-user licensing with zero hardware (hosted path). For a 25-user office with a 10-year-old PBX, hosted typically wins by year two. For a 200-user call center with a invested platform, SIP trunks often win for years.

Want both modeled on your real numbers? We quote both paths free — it’s a 30-minute exercise that settles the debate with dollars.

Frequently asked questions

Which is cheaper, SIP trunking or hosted VoIP?
For 10–50 users with a healthy PBX, SIP trunking often wins short-term (keep hardware, pay only for channels at $10–25/concurrent call). For everyone else — especially replacing an aging PBX — hosted VoIP's per-user model wins within 2–3 years because hardware, maintenance and upgrades disappear.
Can we mix both?
Yes — hybrid is common: SIP trunks keep legacy systems alive in one building or during phased migration while hosted users go cloud. Providers like Sangoma specialize in exactly this bridge.

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