SIP (Session Initiation Protocol) trunking connects a company's PBX to the existing telephone network infrastructure via the internet using VoIP. It was originally designed in 1996 and standardized in 2000. SIP trunking provides benefits like virtual phone numbers, reduced equipment needs, business continuity, and flexible trunk quantities. However, considerations must include system compatibility, additional bandwidth requirements, and challenges like supporting fax/modem traffic and 911 calls. The document discusses ideal environments for SIP trunking like companies with multiple locations, seasonal needs, or those seeking increased functionality. It also reviews cost components and provides an overview of SIP trunking.