What is a SIP Phone?

By Emma Lewis, bOnline

By the end of 2026, traditional phone lines will no longer exist in the UK. That’s because not only are copper landlines no longer fit for purpose, they’re also expensive to maintain. Enter: the SIP phone.

But what is it and why is a SIP phone such a big deal for small businesses? 



 

SIP Phone Basics

 

SIP stands for Session Initiation Protocol (it sounds a lot more techie than it is). SIP is basically a method used to set up and manage communication sessions over the internet. So this could be something like video conferencing or instant messaging, or simply a voice call. It’s just a way of making calls using the internet instead of landlines or mobiles.

 

What’s The Difference Between A SIP Phone And A VoIP Phone?

 

A SIP phone and a VoIP phone both mean you can make calls over the internet, but here’s the difference: a SIP phone uses a specific method called Session Initiation Protocol (as mentioned above) to handle calls and other communications like video and messaging.

On the other hand, a VoIP phone is a broader term for any phone that uses the internet to make calls, and it can use various methods, not just SIP. So, all SIP phones are VoIP phones, but not all VoIP phones are SIP phones. SIP is just one of the ways VoIP technology can work.

 

How Do SIP Phone Systems Work?

 

As mentioned, traditional phones use the Public Switched Telephone Network (PSTN) which is old-school copper wires and circuit-switching technology. However, when you make a call using a SIP phone, the sound is transferred over the internet in digital ‘packets.’

It’s very similar to VoIP (Voice over Internet Protocol), but with a specific set of standards and protocols that make the whole process very efficient and smooth.

 

What Do I Need For A SIP Phone?

 

There are a few basic things you need to use a SIP phone. To start off, you’ll need the SIP phone itself. This could be a physical device that looks like a traditional phone but is equipped with the necessary technology to connect to the internet. Or, it might be a softphone, which is a software application that you install on your smartphone, tablet or computer.

Next, you need a stable internet connection. The better this is, the clearer your calls will be (with less buffering on video calls too). Finally, you will need to sign up with a SIP service provider. Once you’ve got an account, you can then make and receive calls in the usual way.

 

Why Would Small Businesses Use SIP Phones?

 

Besides protecting your small business from the landline switch-off, there are plenty of other reasons why switching to SIP makes sense. For example:

 

Saving Money

 

SIP phones can save small businesses some serious cash, especially if you make a lot of long-distance or international calls. Because calls are made over the internet, there are no worries about high call costs or roaming charges for instance.

 

Call Features

 

SIP phones come with a range of features that you don’t get with traditional landlines. These include things like video conferencing, voicemail to email, call forwarding and the ability to integrate with other business systems.

 

Scalability

 

SIP phones are ideal for small businesses on the grow. That’s because you can easily add or remove lines as needed without needing to install new hardware.

 

Flexibility

 

As long as there’s a decent internet connection you can use a SIP phone from anywhere. This makes it perfect for remote workers or anyone who travels around a lot. You can make and receive calls from your home office, local coffee shop, or even on a beach in Spain.

 

Are There Any Disadvantages to SIP Phones?

 

As with most things in life, there are downsides to SIP phones. For example:

Reliability: Your calls are only as good as your internet connection. If your internet is patchy, you won’t achieve the best call quality. You’re also likely to experience buffering or lag issues, and calls may even drop out altogether.

Security Concerns: As with anything that’s connected to the internet, security risks are real. Hackers could potentially use your service for fraudulent activities or intercept your calls. It’s therefore really important to use the strongest security measures possible, like secure passwords and encryption.

Power Outages: Unlike traditional phones, SIP phones need electricity to work. So if there’s a power cut, your phone service won’t work until it comes back on again.

 

How Do I Set Up My SIP Phone?

 

Setting up a SIP phone may seem a bit daunting, but it’s actually pretty straightforward. Here are some useful steps to take:

Decide On Your SIP Provider: There are all sorts of providers out there, so it’s worth doing your homework and choosing one based on your needs and budget.

Get Your Equipment: If you’re using a physical SIP phone, you’ll need to buy the device. If you’re going the softphone route, download the software onto your mobile device or computer.

Configure Your Phone: Your SIP provider will give you instructions around how to set up your account on your phone. You’ll usually need to enter your SIP account details and adjust some settings.

Test Your Setup: It’s worth making a few test calls to check that everything is working as it should. Check the call quality and make sure you can both send and receive calls without any problems.

 

Who is Using SIP Phones And Why?

 

Small businesses are particularly benefitting from SIP phones because they’re scalable and affordable. If you’re running a startup from your back bedroom or garage, SIP phones are an inexpensive way to grow your business communications.

Remote Workers: With more and more of us working remotely, SIP phones have become invaluable. Employees can stay connected with their colleagues and clients no matter where they are in the world, as long as they have an internet connection.

Call Centres: Call centres benefit from the advanced features of SIP phones, like call recording, call queuing and access to analytics. This helps them manage high volumes of calls efficiently whilst helping improve customer service.

Frequent Travellers: If you travel regularly for work or pleasure, a SIP phone can help you stay in touch without racking up huge phone bills. No matter where in the world you are, as long as there’s an internet connection you can make and receive calls as if you were still at home.

SIP phones are a modern, flexible, and cost-effective way to make and receive calls over the internet. They’re choc full of features that make them an ideal choice for businesses and individuals alike. Yes, there are some disadvantages to know about, but on the whole the benefits usually outweigh the drawbacks, especially in our increasingly connected world. So, if you’re still hanging on to your old landline, why not consider giving a SIP phone system a try.