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SIP Trunking Explained: Keep Your Hardware, Cut Your Call Costs

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If your business has a phone system you’re genuinely happy with, hardware you’ve already paid for, extensions staff know how to use, the idea of ripping it all out just to get off an ageing copper line probably doesn’t sit well. The good news is that in most cases, you don’t have to.

SIP trunking lets you keep your existing PBX hardware and simply change how calls are delivered to it, over the internet instead of a physical copper line. For a lot of Australian small businesses navigating the NBN switch-off, it’s the option that solves the urgent problem, an ageing copper connection, without triggering the bigger, more disruptive decision of replacing a phone system that’s otherwise working fine.

This guide explains what SIP trunking actually is, how it differs from a full move to cloud PBX, and what to check before signing up with a provider.

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What is SIP trunking?

SIP trunking (Session Initiation Protocol trunking) is a way of delivering phone calls to your existing PBX system over the internet, rather than through traditional copper phone lines. Instead of your PBX connecting to the public phone network through physical lines, it connects through a “virtual” trunk supplied by your provider over your internet connection.

In practical terms, this means your business keeps its current phone hardware, handsets, PBX box, extensions, and everything staff are used to, while the underlying connection method changes. It’s a middle ground between a full traditional phone line and a complete cloud-based overhaul.

How does SIP trunking benefit your business?

Lower call costs. Routing calls over the internet instead of the traditional telephone network typically reduces per-call costs, particularly for long-distance and interstate calls.

No hardware replacement. If your PBX supports SIP, and most modern systems do, you avoid the cost and disruption of a full hardware swap.

Flexible capacity. SIP trunks can usually be scaled up or down more easily than physical phone lines, useful if your call volume fluctuates seasonally or you’re adding staff.

A path off copper. As Australia’s copper network is progressively decommissioned, SIP trunking gives businesses a way to move off it without a bigger system change happening at the same time.

Simplified management. Multiple phone lines can often be consolidated into a single SIP trunk, reducing the number of separate services your business needs to manage.

Is SIP trunking better than a full cloud PBX switch?

SIP trunking Full cloud PBX
Existing hardware Keeps your current PBX and handsets Typically requires new cloud-compatible hardware or software
Setup disruption Lower, connects to what you already have Higher, involves a full system migration
Best suited to Businesses happy with their current PBX, wanting to move off copper Businesses wanting modern features (mobile apps, call analytics, remote flexibility)
Feature set Limited to what your existing PBX supports Broader, cloud-native features usually included
Long-term scalability Good, but capped by your PBX’s own capabilities Very high, scales with the provider’s platform
Cost profile Lower upfront cost, ongoing per-trunk pricing Per-user monthly pricing, replaces hardware maintenance costs

Neither option is universally “better,” it depends on where your business is starting from. If your current PBX is relatively modern and staff are comfortable with it, SIP trunking solves the copper problem with minimal disruption. If your hardware is old, limited, or already causing headaches, a full cloud PBX migration may deliver more value for a similar level of change.

Read more: Hosted PBX Explained: Skip the Server Room →

Setting up SIP trunking — what’s involved

  1. PBX compatibility check – your provider confirms your existing phone system supports SIP, most systems installed in the last decade do.
  2. Internet connection assessment – since calls now travel over your internet connection, your provider checks your bandwidth and reliability can support your expected call volume.
  3. Trunk provisioning – your provider sets up the SIP trunk and configures it to connect with your existing PBX.
  4. Number porting – your existing business number is transferred across so nothing changes from a customer’s perspective.
  5. Testing before cutover – calls are tested on the new trunk before your old line is switched off, avoiding any gap in service.
  6. Go live – calls start routing over the new SIP trunk on an agreed date, with your old copper line decommissioned once everything’s confirmed working.

What to look for in a SIP trunking provider

1. Confirmed PBX compatibility. Get written confirmation your specific PBX model and version supports the provider’s SIP trunk before committing.

2. Clear, per-trunk pricing. Understand exactly what’s charged per trunk, per call, and whether there are any bundled minutes included.

3. A backup plan for internet outages. Since calls now depend on your internet connection, ask what happens, and whether calls can fail over to a mobile, if your connection drops.

4. Managed number porting. Confirm your existing number transfers without any gap in service, and check the timeline before disconnection.

5. Local, contactable support. If a trunk needs troubleshooting, Australian-based support that understands your specific PBX setup matters more than a generic support queue.

FAQ

Do I need to replace my phone system to use SIP trunking?

Usually not. Most modern PBX systems support SIP trunking, meaning you can keep your existing hardware and just change how calls are delivered to it.

Is SIP trunking cheaper than a traditional phone line?

Generally, yes, particularly for interstate and long-distance calls, since call traffic travels over the internet rather than the traditional telephone network. Exact savings depend on your call volume and current plan.

Will SIP trunking help with the NBN switch-off?

Yes. SIP trunking moves your call delivery off the copper network and onto your internet connection, which addresses the switch-off directly without requiring a full phone system replacement.

Can I keep my existing business number with SIP trunking?

Yes. Your number is ported across as part of the setup process, so customers keep dialling the same number they always have.

What happens if my internet goes down?

Since SIP trunking relies on your internet connection, an outage will affect calls unless a failover option, such as forwarding to a mobile, has been configured. Ask your provider about this before switching.

How do I know if my PBX supports SIP trunking?

Most PBX systems installed in the last decade support SIP, but it’s worth having a provider confirm compatibility with your specific model and version before signing up.

Keep what works, fix what doesn’t

SIP trunking gives Australian small businesses a practical way to move off the ageing copper network without replacing a phone system that’s otherwise doing its job. It’s often the lower-disruption, lower-cost option for businesses not ready for a full cloud PBX overhaul.

Nexgen has helped Australian businesses migrate their phone systems for 17 years, with local support and a managed porting process from start to finish. Get in touch with our team or call 1300 020 402 to find out whether SIP trunking is the right fit for your setup.

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Privacy Policy

  • 1. About this Document
    • 1.1 This document (“Privacy Policy”) sets out the policy of Nexgen Investment Group Pty Ltd Trading As Nexgen Australia – ABN 88 606 251 503 in respect of the treatment of your Personal Information or your affairs or personal particulars.
  • 2. Interaction with Telecommunications Act 1997 (Cth)
    • 2.1 Nexgen is a Carriage Service Provider and is subject to obligations set out in the Telecommunications Act 1997 (Cth)
    • 2.2 To the extent that any of your Personal Information is also information of the kind referred to section 276 of the Telecommunications Act 1997 (Cth) (in particular, information that relates to your affairs or personal particulars) Nexgen will not use or disclose that information unless permitted by the Telecommunications Act 1997 (Cth) and the Privacy Act 1988 (Cth).
  • 3. Dictionary
    • 3.1 To assist in the understanding of this Privacy Policy, the following capitalized words in this Privacy Policy have the following meanings:
      Carriage Services has the meaning given to that term in the Telecommunications Act 1997 (Cth).
      Carriage Service Provider has the meaning given to that term in the Telecommunications Act 1997 (Cth).
      Personal Information has the meaning given to that term in the Privacy Act 1988 (Cth).
      Related Body Corporate has the meaning given to that term in the Privacy Act 1988 (Cth).
      Sensitive Information has the meaning given to that term in the Privacy Act 1988 (Cth).
      and includes information as to race, political opinion, religious believes, sexual preferences and membership of a professional or trade association.
  • 4. Collection
    • 4.1 1 Nexgen will collect Personal Information from you if that Personal Information is necessary for one or more of Nexgen’s functions or activities.
    • 4.2 Personal Information is predominantly collected so that Nexgen can supply Carriage Services to you (or contact you in respect of a proposed supply of Carriage Services) and perform ancillary and incidental functions. This includes:
      • customer service;
      • complaints handling;
      • billing; and
      • promoting our special offers as well as offers from our Related Bodies Corporate, suppliers and/or affiliated third parties.
    • 4.3 Nexgen may collect Personal Information using several different methods. For example, Personal Information may be collected by Nexgen:
      • directly from you by telephone, email or by completing a form (e.g. Nexgen may be provided with Personal Information on a customer application form, during contractual negotiations, during voice verification etc.); or
      • from third parties such as our Related Bodies Corporate, credit reporting agencies or your representatives; or
      • from information in the public domain – however if it is reasonable and practicable to do so, we will only collected Personal Information about you directly from you.
    • 4.4 Nexgen will take reasonable steps to ensure that you are aware at the time of collection (if practicable):
      • that Nexgen is collecting the Personal Information and as to how to contact Nexgen (if this is not obvious to you);
      • that you may gain access to the Personal Information (see paragraph 9 below);
      • the purpose for which the Personal Information is collected (this may be referring you to this Privacy Policy); done by
      • of the organisations (or types of organisations) to which Nexgen usually discloses Personal Information (this may be done by referring you to this Privacy Policy);
      • of any law that requires the Personal Information to be collected (for example, for compliance with the laws relating to the Integrated Public Number Database); and
      • of the consequences (if any) of Nexgen not collecting the Personal Information (typically, this will be an inability to supply Carriage Services to you).
    • 4.5 If it is not practicable for Nexgen to take reasonable steps to ma e you aware of the matters set out in paragraph 4.4 at the time of collection, Nexgen will do so as soon as practicable after collection.
  • 5. Use and Disclosure
    • 5.1 Nexgen will generally only use Personal Information for the primary purpose for which it was collected (for example, Personal Information set out in a customer application form is collected for Nexgen). the primary purpose of facilitating the supply of Carriage Services by
    • 5.2 However, Nexgen may use or disclose Personal Information for a secondary purpose in the following circumstances:
      Reasonable Expectation
    • 5.3 Nexgen may use or disclose Personal Information for a secondary purpose if:
      • the secondary purpose is related to (or if the Personal Information is Information, directly related to) the primary purpose of collection; and Sensitive
      • you would reasonably expect Nexgen use or disclose the Personal Information for that purpose.
    • 5.4 For example, Nexgen considers that if you are a customer, you would reasonably expect Nexgen to disclose or use your Personal Information to:
      • its printing and mailing house to print and dispatch correspondence and communications to you or
      • notify the customer of special offers or promotions from Nexgen, its Related Bodies Corporate, suppliers and/or affiliated third parties; or
      • ask you to participate in a customer satisfaction survey; or
      • to its dealers, sub-contractors and agents to enable them to perform certain functions on behalf of Nexgen.
  • Consent
    • 5.5 5 Nexgen may use or disclose Personal Information for a secondary purpose if you provide your express consent or consent can be implied.
    • 5.6 Nexgen may seek your consent on an application form for services, during the voice contracting stage of your application or in some other way.
  • Direct Marketing
    • 5.7 Nexgen may use or disclose Personal Information for the secondary purpose of direct marketing.
    • 5.8 Unless paragraphs 5.3 to 5.6 allow Nexgen to otherwise use Personal Information for direct marketing, Nexgen will only use Personal Information for direct marketing to you if:
      • it is not Sensitive Information;
      • it is impracticable for Nexgen to seek your consent before that particular use;
      • Nexgen will not charge you for giving effect to a request by you to not receive direct marketing communications;
      • you have not made a request to Nexgen not to receive direct marketing communications;
      • in each direct marketing communication with you, Nexgen draws to your attention, or prominently displays a notice, that you may express a wish not to receive any further direct marketing communications; and
      • each written direct marketing communication by Nexgen with you sets out Nexgen’s business address and telephone number and, if the communication is made by fax, telex or other electronic means, a number or address at which Nexgen can be directly contacted electronically.
    • 5.9 To avoid doubt, Nexgen will also comply with the Spam Act 2001 (Cth) and Do Not Call Register Act 2006 (Cth) in circumstances of direct marketing to you.
  • Life, Health and Safety
    • 5.10 Nexgen may use or disclose Personal Information if Nexgen reasonably believes that it is necessary to lessen or prevent:
      • a serious and imminent threat to an individual’s life, health or safety; or
      • a serious threat to public health or public safety.
  • Unlawful Activity
    • 5.11 Nexgen may use or disclose Personal Information if Nexgen has reason to suspect that unlawful activity has been, is being, or may be engaged in. However, Nexgen’s use or disclosure will be limited to that which is a necessary part of Nexgen’s investigation into the matter or in reporting Nexgen’s concerns to relevant persons or authorities.
  • Permitted by Law
    • 5.12 Nexgen may use or disclose Personal Information if Nexgen is permitted by law to do so. For example, Nexgen may disclose your Personal Information pursuant to:
      • a law enforcement request;
      • ccourt order or subpoena; or
      • its interception obligations.
  • Disclosure to Enforcement Body
    • 5.13 Nexgen may use or disclose Personal Information if Nexgen is permitted by law to do so. For example, Nexgen may disclose your Personal Information pursuant to an enforcement body (for example, the Australian Federal Police, ASIC, ACCC, police force etc.) if Nexgen believes that it is reasonably necessary for:
      • the prevention, detection, investigation, prosecution or punishment of criminal offences, breaches of a law imposing a penalty or sanction or breaches of a prescribed law;
      • the enforcement of laws relating to the confiscation of the proceeds of crime;
      • the protection of the public revenue;
      • the prevention, detection, investigation or remedying of seriously improper conduct or prescribed conduct; or
      • the preparation for, or conduct of, proceedings before any court or tribunal, or implementation of the orders of a court or tribunal.
  • 6. Data Quality
    • 6.1 Nexgen will review, on a regular and ongoing basis, its collection and storage practices to ascertain how improvements to accuracy can be achieved.
    • 6.2 Nexgen will also take reasonable steps to make sure that the Personal Information collected, used or disclosed is accurate, complete and current.
  • 7. Data Security
    • 7.1 Nexgen will take reasonable steps to protect the Personal Information it holds from misuse and loss and from unauthorised access, modification or disclosure. It will generally do so by:
      • restricting or limiting the access to Personal Information to those of its employees, agents or contractors who have a ‘need to know’;
      • removing access from employees, agents or contractors who no longer work for or with Nexgen or no longer have a ‘need to know’;
      • reviewing and resetting passwords which provide access to Personal Information with reasonable frequency; and
      • implement enhanced security access features to prevent unauthorised access, use or disclosure.
    • 7.2 Nexgen will take reasonable steps to destroy or permanently de-identify Personal Information if it is no longer needed for any purpose for which the Personal Information may be used or disclosed.
  • 8. Openness
    • 8.1 The Nexgen website will contain a prominently displayed link to this Privacy Statement.
    • 8.2 Nexgen will refer any person to this Privacy Statement if that person requests information on Nexgen’s policy on the management of Personal Information.
    • 8.3 On request by a person, Nexgen will take reasonable steps to let the person know, in general terms, what sort of Personal Information is held and the reasons for which that Personal Information is generally collected. Nexgen will also provide information, in general terms, in respect of how Nexgen holds, uses and discloses that Personal Information.
  • 9. Access and Correction
    • 9.1 1 If Nexgen holds your Personal Information, Nexgen will provide you with access on request to that Personal Information, in particular, so that you can verify the Personal Information is accurate, complete and current. If the Personal Information is not accurate, complete or current, Nexgen will take reasonable steps to remedy the inaccurate, incomplete or outdated Personal Information.
    • 9.2 However, Nexgen will not provide you with access to the extent that:
      • providing access would pose a serious and imminent threat to the life or health of any person; or
      • providing access would have an unreasonable impact upon the privacy of any other person; or
      • the request for access is frivolous or vexatious; or
      • the Personal Information relates to existing or anticipated legal proceedings between Nexgen and yourself, and the Personal Information would not be accessible by the process of discovery in those proceedings; or
      • providing access would reveal Nexgen’s intentions in relation to negotiations with you in such a way as to prejudice those negotiations; or
      • providing access would be unlawful; or
      • denying access is required or authorised by or under law; or
      • providing access activity; or would be likely to prejudice an investigation of possible unlawful
      • providing access would be likely to prejudice:
        • the prevention, detection, investigation, prosecution or punishment of criminal offences, breaches of a law imposing a penalty or sanction or breaches of a prescribed law; or
        • the enforcement of laws relating to the confiscation of the proceeds of crime; or a prescribed law; or
        • the protection of the public revenue; or
        • the prevention, detection, investigation or remedying of seriously improper conduct or prescribed conduct; or
        • the preparation for, or conduct of, proceedings before any court or tribunal, or implementation of its orders; by or on behalf of an enforcement body; or
      • an enforcement body performing a lawful security function asks Nexgen not to provide access to the information on the basis that providing access would be likely to cause damage to the security of Australia.
    • 9.3 Additionally, if providing access would reveal evaluative information generated within Nexgen in connection with a commercially sensitive decision-making process, Nexgen may give you an explanation for the commercially sensitive decision rather than direct access to the information.
    • 9.4 Nexgen reserves the right to charge a fee for searching for and providing access to your Personal Information (except if any other law prohibits Nexgen from charging a fee). In any event,
  • 10. Anonymous Transactions
    • 10.1 Nexgen will allow its customers to transact with it anonymously wherever that is reasonable and practicable.
  • 11. Transferring Personal Information Overseas11.1 Nexgen may transfer Personal Information outside of Australia where Nexgen considers that it is necessary or desirable to do so. However, Nexgen will not transfer your Personal Information outside of Australia unless any of the following circumstances exist:
    • Nexgen reasonably believes that the recipient of the Personal Information is subject to a law, binding scheme or contract which effectively upholds principles for fair handling of the information that are substantially similar to the National Privacy Principles contained in the Privacy Act 1988 (Cth); or
    • you consent to the transfer; or
    • the transfer is necessary for the performance of a contract between Nexgen and yourself, or for the implementation of pre-contractual measures taken in response to the your request; or
    • the transfer is necessary for the conclusion or performance of a contract concluded in your interest between the Nexgen and a third party; or
    • all of the following apply:
      • the transfer is for your benefit;
      • it is impracticable to obtain your consent to that transfer;
      • if it were practicable to obtain your consent, you would be likely to give it; or
    • Nexgen has taken reasonable steps to ensure that the information which it has transferred will not be held, used or disclosed by the recipient of the information inconsistently with the National Privacy Principles contained in the Privacy Act 1988 (Cth).