SIP stands for Session Initiation Protocol. SIP trunking is a method of sending voice and other unified communications services over the internet. It works with an IP-enabled PBX (Private Branch eXchange). SIP Trunking replaces traditional telephone lines.
SIP trunks are basically virtual phone lines that enable users to make and receive phone calls over the internet to anyone in the world with a phone number. SIP trunks utilize a packet switch network, in which voice calls are broken down into digital packets and sent across a network to the final destination.