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What Do I Really Need SIP Trunking For?

Posted on: June 11th, 2015

If you’ve been searching the web and cannot quite grasp the basic idea of what SIP is and how SIP trunks can be used to save money in your business, then it might help you to think of a SIP trunk as the digital equivalent of on old fashioned phone line that you would get from the phone company.

Remember, SIP stands for Session Initiation Protocol. It’s the software that manages the start and end of the conversation you’re having over VoIP devices. A SIP trunk is a digital connection between your phone or VoIP PBX and a VoIP provider’s switch that is controlled using SIP.

At this point, you might end up wondering why some providers are marketing SIP trunking as a separate component. It is because one size does not fit all. SIP trunking allows businesses to buy as much or as little as they want.

For instance, a small business might only be interested in basic phone service for inbound and outbound calling, and also wants the cheapest rates possible without the expensive rates of traditional phone service.  They do not need fancier features like call conferencing or auto attendant. For this business, they just need to buy one SIP trunk for each VoIP telephone, and can get unlimited outbound calling for about $10 per month per phone. (That includes both unlimited local and long distance!)

Another example of how businesses can save with SIP trunking is by integrating SIP trunks with a VoIP PBX. This implementation is generally best for businesses with more than 30 users (extensions), and where the number of simultaneous inbound and outbound calls is less than 50% of the number of users. Of course, this implementation also takes into consideration that the business involved needs advance call handling features that only an on-premise PBX provides.

Underused Lines Can Add Costs To An On-Premise VoIP PBX

Even though the initial investment for a VoIP PBX can run from $250 to $3,000 (or more, depending on the size), most businesses of 30 or more employees with qualified IT staff find it better to have their own VoIP PBX.

The perks of owning your own VoIP PBX and integrating with SIP trunks can be huge in terms of cost savings and delivering state-of-the art call processing features.

Imagine you’re an advertising company with about 40 extensions in the office, and at any given time there are never more than 10 concurrent calls (internal calls don’t count towards this). You are currently paying about $600 per month for your local and long distance phone service. Instead, you could purchase 10 SIP trunks at around $10 per month for unlimited outbound calling and use an on-site PBX to connect inbound and outbound calls to your users. That’s right! You could meet all of your inbound and outbound telecom needs for only $100 per month. To make it all work, you need to purchase a PBX. In this example lets say that the advertising company purchased a Digium PBX for about $1,500.00. Since you are saving about $500 per month, your pay back for your investment in the PBX is around 3 months!

SIP Trunking Keeps The Costs Down Even For On-Premise PBX

The fact of the matter is, a SIP Trunking solution only makes you pay for the number of lines you need. Forget the high costs of monthly phone bills or being charged for unused minutes. Instead, you can find savings with SIP Trunking by purchasing only the necessary number of channels, or by paying only for minutes used.

It doesn’t have to be as complicated as you were led to believe. SIP trunking is simply that vital PBX component that condenses all the calls your office is actually making so that you’ll only have to pay for one or two connections.

That’s what you really need SIP Trunking for: to make your current communications all the more efficient without making it all the more expensive.

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