Replacing Legacy Technologies to Realize SIP Trunking Benefits
The business world is embracing SIP trunking benefits. Transparency Market Research estimates the market for SIP trunking services could grow at a 13% annual rate through 2030, with a market value of US $35.5 billion by then. What is the impact of this technology on companies’ communications vs.legacy copper wire?
Most people don’t realize it is SIP trunking technology that allows them to use chat, voice or video chat to communicate on a daily basis. Additionally, many business owners aren’t familiar with how SIP services work or what they can expect from them.
The first thing you have to know about SIP is that it stands for Session Initiation Protocol. SIP trunking allows connection over the internet for voice and unified communications’ applications. The system connects to an IP-enabled Private Branch Exchange (PBX) and, therefore, replaces traditional telephone lines.
One of the biggest SIP trunking benefits is that it enables users to make and receive phone calls via the internet from anywhere in the world to anyone with a phone number. In the past, the Public Switched Telephone Network (PSTN) carried all telephone calls before SIP emerged as a popular and reliable method of transmitting voice signals.
The PSTN is made up of the copper lines people traditionally associate with the “telephone.” It is a circuit-switched network, which relies on physical connections to complete calls between two points. However, the maintenance and cost of these landlines have increased.
According to AARP, “A single basic line from Verizon in New York City, where it is based, can cost $85 a month. Meanwhile, as landline costs have risen — in urban areas the federal Bureau of Labor Statistics shows a 26% increase from July 2010 to July 2020 — wireless costs in the same 10-year period have decreased by 23 percent.”
The same report reveals landlines, once a mainstay at every home and business, no longer seem to be as reliable as once they were. Customers often complain that phone companies are no longer interested in supporting landlines as they switch to fiber optics. They have gone so far as to discourage the use of this technology. Other interesting facts about individual users are below:
- In 2003, nearly 95% of households had a landline.
- Less than 40% of households had landlines at the end of 2018, and the majority had a cellphone as well.
- About 40% of adults 65 and older had gone totally wireless in 2019, compared to 80% of 25 to 34-year-olds.
This information emphasizes the fact that internet-based systems are taking over communications, replacing older platforms for good. SIP trunking benefits include delivering the same or even upgraded quality communications with much less complexity and related costs.
Related: The Differences Between SIP and VoIP
How does SIP Trunking Work for Businesses?
In short, a SIP trunk supports multiple SIP channels. SIP channels are equivalent to one incoming or outgoing call.
SIP trunks can hold an unlimited number of channels, so no matter how many calls your company makes at the same time, you only need one SIP trunk. You will need a certain number of channels depending upon how many calls you make at any one time.
Because of its simplicity, cost-effectiveness and efficiency, SIP trunking can keep all employees within your company connected regardless of where and how they work. As a result, it is becoming more popular and will continue to do so for years to come.
As SIP becomes a primary telecommunications technology, many corporate users become more connected while also saving money. By taking advantage of these SIP trunking benefits, your company can use the same voice capabilities it already has through legacy phones but with the flexibility and scalability of internet technology.
By choosing a leading SIP platform, you and your team can stay connected via video conferencing, chat, instant messaging, collaboration tools, desktop sharing, whiteboards and business analytics.
Top 7 SIP Trunking Benefits for Businesses
Through a comprehensive SIP implementation strategy and with the best partner, you can generate significant returns while paying only a small fee each month. Make sure you shop around for the best SIP trunking provider so your business can get the features and services it really needs.
What are additional SIP trunking benefits you can get?
Benefit #1 – Cost savings from eliminating overlapped networks
You can achieve multiple digital streaming capabilities more efficiently by consolidating the functions of your data network and your voice network onto one IP-based platform. Also, SIP trunking implementation eliminates scalability issues and expands the physical infrastructure to accommodate additional users when needed.
Benefit #2 – Cost savings from eliminating local IP-PSTN gateways
IP-PBXs typically cost more to run, but you save money when you eliminate them. When you purchase a SIP trunking service, you will only need to increase your internet bandwidth rather than buying hardware, in most cases. In addition to removing hardware purchases, installation and maintenance costs, you will also free up space on your network.
Benefit #3 – Cost savings from eliminating BRIs (Basic Rate Interfaces) and PRIs (Primary Rate Interfaces).
As you are no longer using the IP-PSTN gateway with SIP trunks, endpoints will only be able to connect directly to an ITSP (Internet Telephony Service Provider). As a result, you won’t have to pay these subscription fees every month. The cost of replacing these lines will also be lower, and you won’t have to purchase them in expensive bundles of 24 or 32.
Benefit #4 – More cost savings from lower long-distance communications charges
You can significantly lower long-distance communications costs with SIP trunking. When you outsource your PSTN connectivity to a leading SIP trunking provider, you can save even more money since SIP calls connect to the internet using the IP network of the third party’s IP network. The call does not reach a local PSTN until then. This will allow you to make an international call via the internet at a similar price to a local call.
Benefit #5 – Access to ENUM (Telephone Number Mapping)
SIP trunks use ENUM to determine how to access a SIP address, so you can conduct more calls over the internet without involving the PSTN.
Benefit #6 – Save money by eliminating 800 numbers
If your business has multi-city locations, you can quickly include more local numbers instead of purchasing more expensive 800 numbers.
Benefit #7 – Improve the Office Communications Server drastically
The ITSPs will no longer charge extra to access any new services in addition to existing ones such as E911.
How to Find the Best SIP Trunking Partner
Multiple companies throughout the world compete in SIP trunking, which is a dynamic and growing industry. Before migrating your services to any company, look for the ones with a more robust industry trajectory.
You should ask if they are able to reduce implementation costs, provide guaranteed continuity, and offer a full suite of services, including 24/7 network management, proactive monitoring and deployment expertise.
SIP trunking services from BCM One will give you access to all the functionalities of traditional analog telephone systems, but with all of the advantages, features, and scalability of a next-generation multicarrier IP network. Contact us today.