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What is SIP? UK Business Guide 2026 — The Protocol Behind VoIP, Explained in Plain English

SIP explained for UK business owners in 2026. What it is, how it works, why it matters for VoIP, the difference between SIP and SIP trunking, costs and risks.

SIP trunking network infrastructure
Premium guide v1.3 · Updated 17 April 2026

Verified against Ofcom Connected Nations Spring 2026, IASME Cyber Essentials April 2026 standard and current operator pricing.

Quick answer: SIP (Session Initiation Protocol) is the universal standard that makes VoIP calls happen. It’s the part of the system that says “ring this phone, hang up that phone, transfer this call”. Almost every UK business phone system in 2026 — from Microsoft Teams Phone to RingCentral to a £6/month hosted VoIP plan — uses SIP under the hood. You don’t need to operate it directly to use it, but understanding it helps you ask the right questions when buying.

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SIP in one sentence

SIP is a text-based signalling protocol — a bit like HTTP for phone calls — that tells your VoIP equipment when to ring, when to pick up, who’s calling whom, and when to hang up. The actual audio of the call rides on a separate protocol called RTP, but SIP is the air-traffic controller that makes the whole thing work.

SIP PhoneHosted PBXPSTN / SIP Trunk

SIP signalling flows between your phone, the hosted PBX and the SIP trunk that connects to the public network.

The full name (and what each word actually means)

  • Session — a phone call (or video call, or screen share). Anything with a start and an end.
  • Initiation — SIP’s job is to start, modify and end sessions. It doesn’t carry the voice itself.
  • Protocol — a published standard. Defined in RFC 3261 by the IETF in 2002, refined a hundred times since.

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What SIP actually does on a call

Walk through a typical “Bob calls Alice” interaction:

  1. 1 · INVITE

    Bob’s phone sends an INVITE

    Bob’s IP phone tells the hosted PBX: “I want to call alice@company.com”. The PBX looks her up.

  2. 2 · 100 Trying

    PBX acknowledges

    The PBX responds with “100 Trying” so Bob’s phone knows it’s not been ignored.

  3. 3 · 180 Ringing

    Alice’s phone rings

    PBX forwards the INVITE to Alice’s handset. Her phone responds with “180 Ringing”, which travels back to Bob — that’s why he hears a ringtone.

  4. 4 · 200 OK

    Alice picks up

    Her phone sends “200 OK” with codec preferences. Bob’s phone responds with ACK. Now SIP has done its job and steps aside.

  5. 5 · RTP audio

    Audio flows over RTP

    Voice packets stream directly between the two phones (or via the PBX). Each ~20ms of audio is one tiny UDP packet.

  6. 6 · BYE

    Either side hangs up

    Whoever ends the call sends “BYE”, the other side replies “200 OK”, session closed.

SIP signalling and trunking diagram
SIP separates "ring this number" (signalling) from "carry this voice" (RTP) — which is why both have to work for a call to succeed.

SIP vs SIP trunking — they’re not the same thing

The two terms are easy to confuse. Quick clarification:

SIP (the protocol)

The language that VoIP equipment uses to set up and end calls. Free, open, defined by the IETF.

Tap to flip

You experience SIP through:

  • Hosted VoIP apps (RingCentral, 8×8)
  • Microsoft Teams Phone
  • SIP desk handsets (Polycom, Yealink)
  • WebRTC browser calls

SIP trunking (a service)

A virtual phone line you buy from a carrier, replacing ISDN. Connects an on-premise PBX to the public phone network using SIP.

Tap to flip

You buy SIP trunks if you:

  • Already own a PBX you want to keep
  • Need 30+ concurrent channels
  • Want carrier-grade DDI ranges
  • Are migrating off ISDN30 before the 2027 switch-off

For most UK SMBs, you don’t buy SIP — you buy hosted VoIP, and the provider deals with SIP internally. Only larger businesses with on-premise PBXs buy SIP trunks directly. Read more in our SIP trunking guide for UK businesses.

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Why UK businesses care about SIP in 2026

Three reasons SIP is suddenly relevant for non-techies:

The 2027 PSTN switch-off

BT is decommissioning every analogue and ISDN line by January 2027. SIP-based services are the only future-proof replacement.

Deadline

Hybrid working needs IP

SIP lets the same phone number ring a desk handset, a laptop softphone and a mobile app simultaneously. ISDN couldn’t do that.

Flexibility

Cost

SIP-delivered calls cost typically 50% less than ISDN equivalents. Line rental disappears entirely with hosted VoIP.

Saving

SIP requirements — what you actually need

  • A reliable internet connection — 100 kbps per simultaneous call (G.722 HD codec).
  • QoS-capable router if voice and data share the same line.
  • SIP-aware firewall — or critically, one with SIP ALG disabled (see our SIP ALG guide).
  • SIP-compatible handsets or apps — Yealink, Polycom, Cisco, Snom for hardware; the provider’s softphone for laptop/mobile.
  • A SIP account — supplied by the hosted VoIP provider or SIP trunk carrier.

SIP security — is it safe?

Plain SIP is sent in clear text and can theoretically be intercepted. UK business providers in 2026 default to encrypted SIP using two complementary standards:

LayerStandardProtectsDefault in 2026?
SignallingSIP-TLS (port 5061)Who is calling whom, dialled digitsYes on hypercloud, RingCentral, 8×8, Teams Phone
Voice payloadSRTPThe actual audio of the callYes on the same providers

Plus standard hygiene: strong SIP credentials, SIP password rotation, IP whitelist for SIP trunks, fraud monitoring (premium-rate alerts), and disabling SIP ALG on the router. Done right, SIP is more secure than the analogue line it replaces.

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SIP — FAQs

No — SIP is for connecting to the public phone network with real phone numbers. WhatsApp and FaceTime are over-the-top apps with their own walled-garden numbering. SIP is what business phones use because it can dial any 11-digit UK number.

Yes — most modern PBXs (Avaya, Mitel, 3CX) support both. This is how UK businesses migrate gradually before the 2027 ISDN switch-off.

5060 for unencrypted SIP, 5061 for SIP-TLS, and a range like 10000–20000 UDP for the RTP audio. If your firewall blocks those ports outbound, calls fail.

SIP ALG is supposed to help SIP traverse NAT — but in practice it usually breaks calls (one-way audio, dropped registrations). Most UK VoIP providers recommend disabling it. Our SIP ALG explainer covers exactly how.

Written by
CTO and AI Champion

Andrew is a Chief Technology Officer with over 15 years’ experience in IT and telecommunications, leading the design and delivery of robust, scalable technology solutions.

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