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How Can Businesses Save With SIP Trunking?

There are many protocols through which IP based communications can be initiated but the most sort after among these protocols for IP telephony and Unified Communications is the Session Initiation Protocol or SIP. SIP is an IETF (Internet Engineering Task Force) protocol which is required for the initiation of a user session involving multimedia communication elements such as voice, video, messages, games, and more. This IETF protocol is supported by a plenty of IP communications hardware such as Unified Communication servers, Hosted PBXs, Hard-phones, Soft-phones etc. SIP is very beneficial for businesses which have either have several branches based at remote locations or have employees who are generally on the move. In such situations, SIP helps in furnishing IP based communications over the Internet and private IP networks.


These days, many service providers are providing an alternative of PRI lines which is used in traditional telephony via Public Switched Telephone Network. This alternative is SIP Trunks. These trunks or virtual lines are a means for SIP Trunking, which is a service, based on the Session Initiation protocol and is provided by the Internet Telephony Service Providers for the management of IP telephony. SIP Trunking offers a very economic solution to manage the communication all across the globe.

SIP Trunking helps the businesses in reducing their Capital expenses and Operating expenses. This helps in improving the output and productivity of the firm. SIP Trunking also helps in strengthening the association in the enterprise by establishing a common IP platform for integrated transfer of voice, data, video, messages etc.

SIP Trunking strengthens the communication infrastructure of a company and reduces the PSTN access charges. This helps a business in cutting down their Capital expenses and Operating expenses. Besides improving the business continuity and enhancing the productivity of the employees, SIP Trunking helps in the completion of business related tasks more swiftly. December 2013 report of Gartner released by Sorell Slaymaker suggests that businesses are switching to SIP Trunking in order to reduce cost and to strengthen their Unified Communications setup. Businesses which have migrated towards SIP have almost reduced their communication expenses by around 35 to 65 %.

SIP Trunking allows the businesses to save in the following manner:

1. No hidden pricing: Unlike tradition telephony service, SIP Trunking service providers do not charge extra amount for advanced features. These service providers generally provide advanced calling features, free calling minutes and few free Direct Inward Dialing (DID) numbers without charging any additional fees.

2. Economic scalability: In order to increase the number of channels in an enterprise, PRIs have to be leased in a quantized set of 23 lines whereas SIP Trunks can be leased as per your requirement. With SIP Trunks you are prevented from unnecessary leasing of lines, you need to pay for what you require. Besides this, there are a number of service providers who support fluctuating variations in traffic by the option of ‘€œbursting’€.

3. Effective Management: Businesses can reduce their Operating expenses and properly manage the functions related to billing and administration by improving their hardware and its integration with central servers. This is only possible by easy and cost-effective scalability possible with SIP Trunking.

4. Integrated Voice and Data transfer: Enterprises can significantly reduce their operational expenses by simultaneous transfer of voice and data over the common IP infrastructure.

5. Reduction in Hardware: SIP Trunking helps the businesses in eliminating their legacy communication setups and the associated maintenance and operating cost by switching over to IP based communication.

6. Establishment of an Integrated network: SIP Trunking helps the business in integrating Unified Communications servers and Hosted PBXs into centralized data centers. This helps in cutting down the Capital expenses and Operating expenses significantly. Businesses which have successfully implemented this theory have reportedly reduced their aggregate number of voice trunks by 27 to 55 % without having a slight impact on the calling capacity.

7. Lower setup cost: On a single T1 line, PRI is capable of carrying 23 voice channels whereas SIP Trunking is capable of carrying more than 50 voice channels without any deterioration in the call quality. According to June, 2010 report of Gartner by Jay Lassman and Bern Elliot, for the same amount of productivity, expenditure encountered with SIP Trunking is around 28 % less than that encountered with PRI lines.

8. Free Internal calling: SIP Trunking significantly reduces the expenditure on communications as it allows an enterprise to make free internal calls over the internet among various branches located globally. Besides this, Calling is also rendered free within a single branch of an enterprise with SIP Trunking.

Written By

Viola Allen is a SIP and VoIP expert, currently employed with SIPTrunk Providers Dot Com. Her passion is to write about the recent technological advancements, including Cloud Hosted PBX and SIP Trunking. Her main motive is to gain more and more information about the latest technological advancements in the industry.

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