Why Does My Business Need a SIP Trunk?

Session Initiation Protocol (SIP) trunking is considered to be one of the most flexible and affordable ways to connect a PBX to the PSTN. Studies show that by the year 2015, 50% of all U.S. business exchange lines will be SIP-based. Although it seems like this kind of technology is trending and becoming more vital to businesses’ call center solutions, it’s important to first understand the facts of SIP trunking, how it works, and how your business can benefit from it.

SIP trunking’s primary function is to enable the convergence of voice and data over a single-broadband connection. Instead of traveling over traditional phone lines, the calls use the IP network and are sent over a broadband connection and through the internet to the PSTN. In order to utilize SIP trunking for your business, you will need to install a SIP trunk at the same locations where a PBX is.

A SIP trunk will increase your savings in several ways. On average, SIP trunks cost between $20-30 for unlimited inbound and local calling, along with a long distance rate of less than 2 cents per call. A SIP trunk will also bundle your long distance and local calls together for one monthly rate, while eliminating the need to purchase PSTN gateways and TDM interfaces.
SIP trunking works best for companies who have multiple locations. This software supports each of your locations together and requires less provision than traditional telephony. For example, in traditional telephony, you are required to buy a bundle of 23 lines. If you have 4 office locations and each location needs 10 lines, you will have 6 unused lines. With SIP trunking, your business would only need to provision 40 SIP trunks and not spate PRI’s at each location. Since you are utilizing all of your lines and are not required to purchase a full bundle, your cost toward technology will decrease. On top of that, this technology will provide an impeccable quality of all IP calling between locations.

Some of the advantages of SIP trunking will save your company money, but the overall flexibility of this technology will save you time and overall stress. Because SIP trunks are virtual and provisioned over your internet connection, it’s quite simple to add capacity, which will make your planning and optimization process much easier.
To learn more about SIP trunking, visit our blog or sign up for a free consultation.

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