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Why SIP Trunking Can Save You Money

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August 02, 2013

Why SIP Trunking Can Save You Money

By Frank Griffin, TMCnet Contributing Writer

A session initiation protocol (SIP) trunking simplifies the way in which a private branch exchange (PBX (News - Alert)) connects to the Internet; in essence replacing the conventional telephone trunk with the Internet. This gives organizations the ability to connect with fixed and mobile users anywhere in the world, combining data, voice and video on a single line, saving the organization a noticeable amount of money.

For organizations with an in-house IP PBX system, this solution provides an effective way to use an available resource to save money. An IP PBX system connects outside callers and those within the organization with each other using the Internet. The SIP trunk uses this available resource by connecting to the PBX and providing additional savings.

Replacing public switched telephone network (PSTN) cables with telephone service over the data network through a dedicated line, a shared connection or Internet connectivity eliminates the fees for using the cables. Compared to traditional PSTN trunk SIP is able to increase the number of voice session that can be carried over the SIP trunk. This allows it to deliver many communication functionalities that are essential in today's business environment, such as unified communications (UC). With this capability organizations can implement UC as a service without having to resort to on-premise hardware and the expense and headache associated with the setup.

SIP eliminates the need to purchase equipment used to facilitate the connection of VoIP installations to PSTN. Gateways and bridges are expensive and with SIP, the company doesn't have to pay because the connectivity is made with the IP service provider's network.

Some of the benefits and cost saving measure of SIP trunking include:

  • Provides better reliability than PSTN because failover solutions can be implemented with multiple redundancy measures
  • Converge local, long distance and broadband Internet services onto a single circuit with dynamic bandwidth allocation with unlimited outbound and incoming calls
  • Real time communications beyond LAN with free business-ready features
  • SIP trunks can be installed and turned up remotely
  • Consolidate expenses

As the market grows, manufacturers are creating new hardware to take advantage of this growing communications solution. SIP phones allow UC, collaboration, presence and many other features that would have been impossible or too expensive with older technology.

Edited by Alisen Downey

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