SIP Trunking Eliminates High Cost for Communication

SIP trunking is one of the ways enterprises have saved money on communication costs. Recently, Infonectics released a new report regarding the size of the global SIP services market. This report indicated the industry is set to grow 35 percent in 2014, which means the market will be worth $4.4 billion with potential to grow to $8 billion 2018. Since more than 20 percent of all trunks for businesses are SIP, it has become the “go-to” solution in North America.

What is SIP Trunking?

SIP (Session Initiation Protocol) is used to install or de-install call sessions in an IP-base network. SIP is compatible with all types of applications including video and audio conferencing sessions and voice calls to soft-phones. SIP protocol is an IP-based carrier service that was designed to replace ISDN PRI lines or T1 or T3 lines. An SIP protocol will transfer data over the Internet rather than a traditional phone line. This lowers costs significantly.

Voice over Internet Protocol takes an analog voice signal and transforms it into a digital signal that can travel over the Internet. It is flexible enough to allow a phone call to be initiated from a traditional phone or a computer. Special phones are also available for use with this type of protocol. The phones also have the ability to reach 911 services or 411 services. Even if this type of phone is used, they must comply with Federal Communications Commission (FCC). All interconnected service providers must adhere to the requirements that are associated with traditional telecommunications services.

Bandwidth efficiency and low costs have business owners choosing Voice over Internet Protocol over 80 percent of the time over traditional telephone systems. Most companies handling this type of protocol tend to treat all data transferred over the Internet as distinct elements. This means that phone calls, email, and faxes are all distinct from one another but transferred over the same line.

Voice over Internet Protocol is a Growing Industry

Currently, over 31 million people have some sort of connection in their homes, and the number is only expected to increase in the next five years. In the last five years, the market has already grown 16.7 percent annually. From 2011 to 2012, the Voice over Internet Protocol industry had a 9 percent rise in profit and a $63 billion dollar revenue report. Some experts predict that IP traffic will triple in the next five years and much of this is attributed to Voice over Internet Protocol. Experts hope that more 4G capabilities on mobile devices will improve the experience with Voice over Internet Protocol.

What are the Benefits of SIP Protocol?

1. Affordability

When you integrate SIP protocol, the savings can be anywhere between 30 percent and 60 percent. SIP can be ordered in any size you want, but size may affect the cost. PRI and T1 are sold in increments of four, eight, or 24 channels, but trunks are flexible in the size. Some offices are small and only require one to two sessions at a time. Until the office is ready to scale, it’s best to only order and pay for what you need.

2. Scalability

Trunking makes networks highly scalable. As the office grows, you can add more circuits. A scalable network keeps you from predicting the company’s growth in the future. Instead, you can conserve funds and allocate them to other mission critical applications. Order what you need when you need it.

3. Flexibility

Trunking gives your communications solution more flexibility. You can adjust the size of the trunk to provide more flexibility in bandwidth requirements. Bandwidth can be dynamically varied based upon your application’s requirements. This is, yet, another reason why trunking is considered flexible.

4. Disaster Recovery

Disaster recovery is one of the primary reasons for trunking. Because these trunks are IP-based, they are more flexible than fixed circuits. SIP lines can be used as a back-up to a traditional system. Users can program the SIP lines to ensure that the lines roll-over to backup sites. The system will “kick-in” according to the rules you set before the disaster occurs.

5. Reliability

These networks are reliable because they run off fiber, which are mostly protected from elements and other potential disasters. They are fairly reliable and will help you in the event of a disaster.

6. Support for Unified Communications

SIP is necessary for enabling UC applications. Companies need the ability to transfer calls from a mobile phone to a laptop-based phone and vice versa. The transfer needs to appear seamless, or customers may think your business is unprofessional. Trunks can provide the network foundation for your enterprise, which will enable you to launch applications.

7. VoIP Helps to Eliminate High Costs

VoIP is the new protocol helping to lower phone costs. Long distance calls overseas are the same price or cheaper than domestic long distance calls, and it’s all because of VoIP. This new protocol has provided a lot of opportunities for new business owners with limited capital. These enterprises can save money and invest in other mission critical aspects of the organization.

8. Features of Session Initiation Protocol Trunking

When voice and data are combined in one single connection, you get a much more reliable system. You can use your current Internet connection and transfer voice data over the a single connection. In addition to the savings and reliability, trunking can also provide features such as Caller ID, E911, unlimited local and long distance calling, and DID calling. The features of SIP are astounding. More companies are migrating to the use of SIP trunking for this reason.

Eliminate High Costs Associated With Communication

If you are concerned about high costs in your enterprise, you should consider this technology to lower your expenses. While it won’t eliminate all costs, it will lower some of your expenses, especially if you can still use your existing technology. Evaluate your current spending and perform a cost comparison. Even if you have to purchase new phones or a new server, the initial expenses still may not be as much as the average traditional phone line services and maintenance. Investing in Voice over Internet Protocol is certainly something to consider.