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Everything About SIP Telephone and How Does It Work

by Nathan Zachary

Ever heard of a business that could succeed without a reliable and secure communications channel? No, right! It was an impossible feat to manage a business without a proper mode of communication both inside and outside the organisation in older times. The scenario still remains the same. There is no replacement for effective communication.

With the advancement in communications technology, the form of communication has evolved manyfold. One such technological advancement is a SIP-based telephone system. Businesses can reap maximum benefits from this technology that relies on the internet.

In this article, we let you know more about this fascinating technology and how it works. Let’s begin!

What Is SIP?

SIP stands for Session Initiation Protocol which is used for managing multimedia communication such as voice calls and video calls. Using SIP will require a SIP phone and a working internet connection because it is over the internet that the SIP phone establishes a connection. They are different from traditional phones because of their dependency on the internet to make all calls secure and reliable.

SIP telephones help provide unified communications to organisations that are looking for secure and scalable communication throughout their workplaces.

What Are the Top Features of SIP Telephone?

SIP handset might look alike old telephones on the outside but using SIP telephones organisations can perform various advanced communication functions. They need no longer rely only on voice calls. Additional features include placing callers on hold and transferring callers to different extensions. Some of its top features include:

  • Conference calling
  • Basic and advanced call forwarding
  • Auto-attendant
  • Call recording
  • Custom caller ID
  • HD phone calls
  • Hold with optional music
  • Mobile and desktop app integration
  • Shared call experience

How Does SIP Telephone Work?

SIP-based telephones operate on a relatively simple mechanism. The network traffic here is almost similar to the HTTP traffic when accessing web pages. When a call is being made from a SIP phone, the device notifies this information to the connected SIP server, which might be your business VoIP service.

The SIP server then contacts another extension or sends the call to the PSTN (Public Switched Telephone Network). The call is established when the other side answers the call. The SIP server automatically negotiates and decide the call quality in real-time during the call.

Types Of SIP Phones:

SIP phones can be broadly classified into hard phones and softphones. Both can work with cloud-based phone systems and offer many advantages over traditional analogue telephones.

Hard phones

These phones look just like old telephones and are also known as desk phones and speakerphones. They can either be connected using an ethernet cable or come in a wireless form too. Some of the market leaders in SIP phones include NEC, Yealink, and Poly IP/VoIP phone solutions. Hard phones can further be categorised into three types:


As the name might suggest, these phones are the starter versions of SIP telephones. They come with a dial pad and be used to complete internal and external calls. Due to their reduced budgetary requirements and ease of use, most call centres use these SIP phones.


These SIP phones are an upgrade to the basic hard phone versions. They come with additional keys to added VoIP functions and often provide better functionality including a browsable directory with multiple extensions. These phones are mostly used across various workplaces and can also be sent home with employees who are working remotely.


These SIP hard phones offer the most advanced features available. They can do all that a basic and intermediate SIP phone does and have functions that top that. Wi-Fi or Bluetooth compatibility, multiple extensions, coloured display, etc. are to name just a few of their advanced features. These phones can be preferred by businesses that want to spare no expenses when it comes to maintaining effective communication across their workplaces.


No matter the advantages of using SIP hard phones, they can become stationary. Softphones can uplift that problem. These are applications that can be used to make calls directly from a desktop, laptop, or smartphone. They are the easiest to use and can be installed by employers in a self-service format. This also gives users the advantage of not being fixed to their desks when making or receiving a call. Also, the users need to ensure the battery of their laptop or smartphone is charged enough to carry out these calls.

What Are the Benefits of SIP Phone?

As it is evident from the type of SIP phones and their usability, they offer many benefits over traditional phones. It needs little to no time for users to adapt to these phones. All the user has to do is dial the number they need to connect with and all the tedious tasks of a call connection, quality, security, etc. are done on the back end without the user having to bother about them.

Some of the other advantages are shortly listed as follows:

  • No need to rely on local copper lines of telephone companies
  • Virtually maintenance-free
  • Ability to effectively connect all staff including remote workers
  • Robust encryption for increased call security
  • Cloud-based management of phone system allows for instant and on-demand delivery of features
  • Cost-effective in the long run

In The End:

SIP telephones provide businesses with a unified communications solution that is both reliable and secure. It also offers better scalability options as compared to traditional business telephone systems. Affordability and technological advancement are both on the plus side of SIP telephones and businesses who are looking for a long-term communications investment should consider this option. If you are a business operating in Australia and searching for the right SIP telephone system for your workplace, contact your nearest communications experts soon. They can guide you to make the right business communications decision.

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