What is the difference between SIP and VOIP services?

SIP and VoIP are terms that get thrown around a lot, but they can be confusing for business owners who are just trying to figure out what type of phone system will work best for them. We are here to help you break down these two different types of phone services, so you can have all of the information you need to make an informed decision.
Olivia Maier

Olivia Maier

3 min read

Let’s get started with VoIP

VoIP, or Voice Over Internet Protocol phone systems, are internet based phone systems.

The technology behind VoIP systems

VoIP systems will start the call process by picking up your voice through the microphone of the device that you are using. This can be a computer, phone, or tablet. Your voice generates analog voice signals, which are compressed into packets of data. The VoIP data packets are transmitted over the internet and then decompressed back to analog voice signals for the person on the other side of your phone call.

You may be wondering how that works for the other person on your calls. If you are using a VoIP phone system, your callers, whether they are using a VoIP system or not, wouldn’t notice any difference as well. As a VoIP user you won’t have to worry about data packet compression, analog signals, or any of the tech that makes these calls happen. Making and receiving calls through a VoIP system is done in the same way that it would be with a traditional telephone system.

How about SIP?

SIP, or Session Initiation Protocol, is a communication protocol that requires SIP phones to establish communication over the internet.

The basics of SIP services

You may be scratching your head at this point and thinking…”huh??”, which is completely understandable. SIP and VoIP systems are concepts with a fair amount of overlap, but here are the basics for you.

  • When a call takes place using SIP phones, it relies on the internet to make communication possible
  • The term “SIP trunking” refers to the backbones of phone lines that allow users to connect to a telephone network.
  • SIP technology can be used to help support VoIP services, but they are not required for VoIP voice communications.
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So wait, what is the difference?

Both SIP and VoIp are ways to enable modern business communication. VoIP technology allows an easy way to access cloud communication, and can be used for voice communication. SIP technology, which can be used to enable VoIP, can offer additional communication methods such as voice chat. In most cases, a VoIP system is a more cost effective solution for businesses, but pricing will vary depending on providers. If you are looking to upgrade your business phone system, getting started with a VoIP system will likely be your best bet. But, if you’re looking for a new communications system as a whole, including video and voice, you will likely turn to SIP providers.

Both systems require a reliable internet connection, and devices to support communication. When you are looking at different systems, we recommend seeing if the devices you currently use are compatible with your new system. At Yodel, we are able to support VoIP communications over smartphones, tablets, computers, and hardware phones. This way you don’t have to worry about upgrading your devices alongside a new phone system.

In the end…

Upgrading your business phone system can be a scary, and exhausting process. We are here to make it easier with our free trial to get started. During your free trial you can even schedule a free demo call with one of our team members, so you can learn how best to take advantage of Yodel. Get started today!

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