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VoIP (Voice over Internet Protocol)
Also known as Internet Telephony, means 'voice transmitted over a computer network'. Voice is digitized, then broken into small IP packets for transmission over corporate LANs, private data networks, the public internet or a combination of networks. So as the name suggests VoIP uses the Internet Protocol but it does not have to be transmitted exclusively over the Internet.
SIP (Session Initiation Protocol)
A signaling protocol used by IP-telephones, IP-PABXs and other IP-telephone systems for creating, modifying, and terminating sessions (telephone calls, video calls, instant messaging). The SIP standard comes from the Internet community and has become widely accepted over protocols proposed by the telecommunications community.
A SIP-Trunk
The VoIP equivalent of ‘old-world' PABX trunks which connect a PABX with a telephone exchange. A SIP-trunk connects an IP-PABX to the telephone network and delivers traditional functions such as the IP equivalent of DDI lines.
A PABX (Private Automatic Branch eXchange, also PBX)
A small telephone exchange dedicated to a business. Calls made from extensions within an office are first handled by the exchange, which routes the call according to various rules. This ensures that calls within the business do not step out to the PSTN and incur charges. Modern IP-PABXs are considerably cheaper and better than their PSTN predecessors and are capable of a wide range of services including Voicemail, Intelligent Incoming Call Routing and Lowest Cost Routing. PABXs using VoIP natively are called IP-PABXs.
Centrex
A virtual PABX service provided by the telephone company rather than existing as a separate device on the private telephone network. Centrex is generally used for small offices, or offices consisting of many remote sites, in order to provide many of the advantages of a PABX without the initial capital outlay.
PSTN (Public Switch Telephone Network)
The telephone network that has provided traditional telephone services is a Public Switched Telephone Network.
