SIP Trunking is a relatively new communication technology that allows you to make calls over the Internet. One of the reasons for many businesses switching to this new technology is SIP Trunk pricing. Businesses looking to cut down communication costs need to consider SIP Trunk. Here we have tried to explain SIP Trunking in detail.
What is SIP Trunking?
SIP stands for Session Initiation Protocol which is a way to achieve voice over Internet Protocol. SIP forms the basis of SIP Trunking which is the standard communication protocol for transmitting audio and video across a data network.
SIP Trunking removes the need for physical connection to a phone company. In SIP Trunk, there are no circuit boxes, wiring or hardware to establish a connection to the PSTN. A SIP Trunk eliminates the need for traditional analog phone lines as it is installed virtually on your business Internet connection.
How Does SIP Trunk Work?
SIP Trunks function as an intermediary between the Internet Telephony Service Provider (ITSP) and your business phone system. SIP Trunking refers to a method of sending voice and other unified communication services over the Internet.
SIP Trunks are virtual phone lines that enable the user to make and receive a phone call over the Internet to any person having a phone number. Each SIP Trunk supports SIP channels. A SIP channel is equivalent to one incoming or outgoing call. A SIP Trunk can hold an unlimited number of SIP channels.
Using SIP Trunks your ITSP can connect one, two or twenty channels to your PBX in your office. SIP Trunk allows you to make local, long-distance, and international calls over the Internet. If your office has an on-premise PBX, the SIP Trunk provider can connect to your office and you can make outbound calls on your existing system at reduced rates. Unlike PSTN, there are no restrictions on the number of concurrent calls.
To switch to SIP Trunking, you will need the following things.
· SIP-compatible PBX also known as IP PBX
· Internet connection
· VoIP phone or VoIP adapters if you want to use existing traditional phones
· Network connection for your phones
How Does SIP Trunk Pricing Works?
The SIP Trunk pricing varies from provider to provider. Several important things need to be considered when evaluating SIP Trunking costs.
· Subscription: the subscription costs also include the cost of the SIP channel or DID number. You have to pay per SIP channel to the service provider. The average cost of a SIP channel is in the range of $1.67 – $15 per month.
· Calling Rates: The outbound calls cost per minute which are in the range of $0.005 – $0.03 per minute.
· Add-on Costs: you need to pay extra for features, like call recording which is included as add-on costs in your monthly billing.
· Setup Fees: businesses have to pay one-time costs for setup. Some SIP Trunking service providers do not charge setup fees.
Benefits of SIP Trunking
Companies using traditional telephony also have to pay for the unutilized capacity of the telecommunication system. Businesses also have to provision for monthly maintenance and have to pay higher charges for long-distance and international calls.
In the case of SIP Trunk, companies have to pay a fee on a user basis. The plans have fixed toll-free minutes and unlimited calling within the country. For long-distance and international calls, you have to pay a comparatively lower fee than traditional telephony.
The scalability of the resources and systems is an important factor for businesses. You need to ensure your current business systems can be scaled up as the business grows. SIP Trunk is highly scalable and you don’t need to build a new IT infrastructure to accommodate the increasing number of calls.
All you need to do is get more SIP Trunks which will automatically add more SIP channels and your business phone system will be up and ready to handle increased communication flow.
There is no doubt SIP Trunk is a modern communication technology that offers several benefits over traditional telephony. If you compare the traditional and SIP Trunk pricing, the latter can save up to 70% on your company’s monthly phone bill. Do you’ve any questions?