A SIP server is the main component of an IP PBX, dealing with the setup of all SIP calls in the network. A SIP server is also referred to as a SIP Proxy or a Registrar.

Although the SIP server is the most important part of the SIP based phone system, it only handles call setup and call tear down. It does not actually transmit or receive any audio. This is done by the media server in RTP.