Internet telephony service providers (ITSPs) use the Session Internet Protocol (SIP) to deliver voice over internet protocol (VoIP) services. Put simply, SIP trunking is using this technology to streamline and simplify the process of calling between locations. However, it offers important cost benefits because it removes the need for individual lines to be used between the individual locations and the public telephone network.
How Does SIP Trunking Save Money?
If a business has two, three, or a hundred locations, they can intercommunicate using the voice over internet protocol and save considerable expenditure when compared with traditional land lines. That’s because instead of picking up the phone and dialling through a public phone network, the calls are carried over the internet.
However, everything changes as soon as we want to make or receive calls from outside the firewalled network. If we want to call, say the landline of another company or get in touch with someone’s mobile phone, we have no choice but to go through public networks. If each location has a line to the public exchange, there’s clearly a fixed cost and usage cost associated with each one, so the cost to a business is the price of one line multiplied by the number of locations.
However, this expenditure might not be necessary. Using SIP trunking, the network itself is connected to the public exchange, not the individual branches. Calls made from branch to branch use the network as usual. But calls to outside the branch go through a single connection to the public network, and therefore only one such connection is required, not many. More connections will increase the capacity and the number of simultaneous calls your business can make, however, so larger organisations or businesses that have heavy phone use will need to purchase extra lines to ensure they have enough capacity.
So just as VoIP can drastically reduce the cost of calls within the company’s network, so SIP trunking can have a considerable effect on the cost of calls to outside the network, because the number of lines will be greatly reduced, and with that will come the reduced cost of renting the numerous individual lines.
SIP trunking also adds flexibility to a traditional phone system. For example, it will be able to carry the whole range of communication channels we take for granted online, so we can use it for sending files, text-based communication and, finally, video calling and teleconferencing.
Active are experts in SIP trunking and can save your business substantial amounts of money on your phone calls. Please get in touch to find out more.