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SIP Trunks vs Hosted VoIP — What's the Difference and Which Do You Need?

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When businesses start researching how to replace their ISDN lines before the 2027 switch-off, two terms come up constantly: SIP trunks and hosted VoIP. They're often used interchangeably, but they're actually quite different products suited to different situations.

☎️

SIP trunks replace your phone lines but keep your existing phone system (PBX). Think of it as swapping the pipes while keeping the same plumbing.

☁️

Hosted VoIP replaces both your phone lines AND your phone system. Everything moves to the cloud. You get new phones (or apps), and the whole system is managed remotely.

The Simple Version

☎️

SIP trunks replace your phone lines but keep your existing phone system (PBX). Think of it as swapping the pipes while keeping the same plumbing.

☁️

Hosted VoIP replaces both your phone lines AND your phone system. Everything moves to the cloud. You get new phones (or apps), and the whole system is managed remotely.

SIP Trunks — When They Make Sense

If your business has an existing on-premise PBX — a physical phone system box on your wall, whether it's a Panasonic, Avaya, Cisco or similar — SIP trunks let you keep it. Instead of ISDN lines plugging into the PBX, SIP trunks connect it to the internet, and calls travel over your broadband connection.

Hosted VoIP — When It Makes Sense

Hosted VoIP replaces everything. Your phone system lives in the cloud — managed by Telexico, updated automatically, accessible from anywhere. Staff use Yealink desk phones, or the mobile/desktop app. No physical PBX box on the wall.

Which Is Right for You?

The honest answer: if your PBX is more than 7–8 years old, hosted VoIP will almost certainly work out better long-term — even if SIP trunks seem cheaper initially. An ageing PBX will need repair and eventually replacement anyway, and you'll face another migration. Doing it once, properly, is more cost-effective.

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If your PBX is modern and well-configured, SIP trunks are an excellent, cost-effective bridge to the 2027 deadline — and you can always migrate to hosted VoIP later.

SIP Trunks or Hosted VoIP?

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Based in Wolverhampton, Telexico provides VoIP, broadband, CCTV, AI services and cyber security to businesses across Birmingham, the West Midlands and the UK. Learn more →

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The complete picture

SIP TrunksHosted VoIP
Keep existing PBX✅ Yes❌ Replace
Monthly cost (10 users)£50–£80£100–£200
Remote/mobile working⚠️ Depends on PBX✅ Built in
AI receptionist option❌ No✅ Yes
Ongoing managementYou manage PBXWe manage all
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Sarah M.
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"Switched our entire office phone system and broadband. The team handled everything, zero downtime. Saving over £200 a month compared to our old BT contract."

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James T.
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"Had failover installed after losing internet for a whole day. Assure X kicks in within seconds. Our team didn't even notice when the main line dropped last week."

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Rachel K.
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"Our dental practice needed reliable phones and fast broadband. Telexico sorted everything in one visit. The AI receptionist handles after-hours calls brilliantly."

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