How SIP Trunk Providers Can Save Your Business Money

A SIP trunk is the direct connection of an Internet telephony service provider, or ITSP, to an organization. This configuration offers a less expensive and much simpler way to upgrade, design, manage, and operate services. ITSP’s provide considerable savings for services such as long distance calling, line extension, and multimedia conferencing. Investing in SIP can offer a fast and extensive return on investment for any organization.

It is important to note that aside from VoIP calls, a SIP trunk provider can offer several other useful features. SIP provides Enhanced 911, real-time communication, instant messages, and multimedia conferences. Over the next few years there are projected advances in SIP and SIP-based communication technology that will make using a SIP trunk provider more common practice.

Although there are numerous benefits that SIP trunking can provide; the most beneficial aspect of the system is the substantial cost savings. For many organizations, SIP trunking has become a practical option for internal and external communication needs.

Why Does An Organization Need SIP?

Implementing SIP trunking can help an organization simplify telecommunications. This service can offer improvements in real-time communication and line extensions. However, the primary motivation for implementing SIP is the immediate and significant cost savings.

•SIP can save money on long distance calling
Long distance calls are notably less expensive while using a SIP connection.

•Getting rid of PBX and IP-PSTN can save money
The SIP trunk provider connects directly with the ITSP without using a publicly switched network. This allows an organization to save money on the switch attendant cost and service. In some cases, ITSPs can host a PBX. This can manage both the user administration and the PBX hardware. This reduces maintenance and complexity while providing substantial cost savings.

•Remove the need for unnecessary networks
Employing SIP trunking is a rational step towards creating a single IP-based network. This saves money by reducing costs associated with using unnecessary telephone and data networks.

• Eliminate or Reduce PRI and BRI Subscriptions
SIP trunking eliminates fees associated with expensive PRIs and BRIs. SIP replaces these fees with a service that can cost considerably less. More importantly, SIP trunking does not require the need to purchase lines in blocks of 32 and 24. Instead, bandwidth is purchased in small increments at cheaper prices.

SIP Can Improve Productivity

SIP trunking can improve productivity by increasing the number of functions to a system. SIP trunking allows organizations to:

•Place calls, both long distance and local, from the intranet
•Use an existing system to perform internet searches
•Externally send videos, emails, and text messages
•Obtain access to emergency dialing and directory assistance

Without the use of SIP trunking, an organization’s intranet is only capable of communicating internally. Using SIP, allows the organization to use VoIP services to connect to external networks via the phone system.

Using A SIP Trunk Provider Can Reduce Phone Expenses

Using SIP to connect to the ITSP, allows organizations to save money. Business phones require a line for PSTNs. Using SIP allows the organization to eliminate the cost associated with maintaining these lines. In some instances, organizations have more than one main rate interface or PRI. Using SIP can completely remove this expense. SIP trunking offers more features than PSTNs without extra charges. PSTNs usually charge for on a per-line basis for services that include:

• Line extensions
• Voicemail
• Fax Lines
• Caller ID
• Call Forwarding
• Call Waiting

SIP trunking is projected to grow 52% between 2011 and 2015. This is primarily a result of the major savings incurred by replacing digital and analog PRI lines with SIP trunking. There are many other areas where organizations save money while using SIP trunking.

Additional Areas Where SIP Trunking Saves Money

Eliminate Call Forwarding Costs: It is important to remember that conventional land lines are based on geographic location. Formerly, when an organization relocated, the company had to use remote call forwarding in order to maintain an old number. Using this service can costs a monthly fee plus an extra few cents per minute for every inbound call to the number. Some organizations pay thousands of dollars for call forwarding costs.

Unlimited Calling: SIP provides a calling plan that typically includes unlimited outbound and inbound calling. This can offer considerable savings in comparison to analog lines. In some cases, carriers can charge six to eight cents per minute on analog lines.

Included Features: This system offers Caller ID and Direct Inward Dial, or DID, as basic features that incur no additional costs. In some instances, Caller ID on analog lines can cost more than $8 per line per month.

The best aspect of implementing SIP trunking is the considerable amount of savings. Moreover, these savings can come from several different areas. This helps organizations save a substantial amount of money while reducing monthly expenses. This is not only beneficial to the organization, but it is smart business.

SIP and Extensions

This system can save organizations thousands of dollars every year by using Internet telephony technology. SIP is useful for organizations that use several extensions but have low amounts of simultaneous calls.

The trunk makes external and internal business calls inexpensive as a result of unlimited Internet phone calls. Using trunks are notably cheaper, around $10 to $15 per outbound line. For an organization that has the ability to handle in-house telecom systems, SIP offers an excellent and cheap alternative to hosted.

A SIP system customizes telecom systems so organizations only pay for services they need. SIP can maintain and support an organization’s in-house IP PBX. This means organizations do not pay for unlimited calling on each extension. Moreover, organizations only purchase the amount of external lines required for outbound calling.

Simply put, when an organization projects twenty inbound or outbound calls at any given time, the business can purchase twenty SIP lines instead of paying for unlimited calling on all extensions.

With SIP, the organization simply needs to understand how many outbound and inbound calls they expect to receive on a daily basis. This saves money and allows the organization to purchase the appropriate amount of trunks. For example, when an organization has 40 extensions, but only expects around 15 simultaneous calls, the organization should only purchase 15 SIP lines.


Investing in a SIP trunk provider an offer quick and considerable savings for many organizations. In most cases, this system can provide a rapid return on investment. SIP not only offers VoIP calling, but this system provides many other useful features. The best aspect of implementing SIP trunking is the amount of savings. Moreover, these savings can come from many different areas and help organizations of many different types and sizes.