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Cost Savings from SIP Trunking: What You Need to Know

Posted by Randy Kremlacek on Apr 29, 2012 11:08:00 PM

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SIP Trunking Saves You MoneyA recent article I came across refers to a study done on SIP Trunking services that projects a 52% compound annual growth rate between 2011 and 2015. That's a huge number that begs the question, “What's motivating businesses to replace their old service at such a fast rate?” It's pretty simple. There is major savings in replacing traditional analog and digital PRI lines with SIP Trunking.

This article will explain some of the many areas where you can save money.

Unlimited Calling

Most SIP Trunking providers offer a calling plan that will include unlimited domestic inbound and outbound calling.  This can provide substantial savings, especially compared to analog lines. In reviewing telephone bills, TeleDynamic frequently finds carriers charging an outrageous six to seven cents per minute for analog lines. There is also substantial  savings from changing from traditional PRI circuits, albeit not quite as dramatic but still very much worth doing.

Housekeeping Benefits

When converting to a new telephone carrier, it is necessary to inventory and identify all of the circuits that are being billed to you, so you don't leave anything behind. Almost without fail, you'll find abandoned lines that haven't been used in years.  A local SIP Trunking provider can do an on-premise inspection to identify those unused lines as well as inspect your network for suitability for the service. 

Features Included

SIP trunking has Direct Inward Dial (DID) and Caller ID as standard features at no extra cost. Caller ID on an analog line in the San Francisco Bay Area costs $7.50 per month per line.

Eliminate Call Forwarding Charges

Traditional land lines are tied to a geographic location.  In the past, when you relocated your office, you had to use a feature called remote call forwarding to retain your old phone number.  If you have that service, you are paying monthly for the feature plus several cents a minute for each inbound phone call to that number.  I've seen bills where the call forwarding costs run into the thousands.

Eliminate Dedicated Voice Lines  

PRI circuits and analog phone lines are dedicated for voice service.  Not only are they expensive but the price continues to march upward at a rapid pace.  It's no secret that the carriers want out of this business as they are losing money in this area.  So, help out your local phone company and cancel those money-losing lines!

No Hardware Costs

SIP Trunking does not require a line or trunk card.  SIP service is provided as a service over the Internet rather than as a physical connection. 

Multiple Location Savings 

Companies with multiple locations can share SIP Trunks between locations, pooling the resources to gain efficiency.

The good news about SIP Trunking is that the savings come from many areas. That translates into a wide range of companies who can save big money and lower their monthly expenses. That's smart business.

 

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Randy Kremlacek

President | Head Chef

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Randy Kremlacek is president and Head Chef of TeleDynamic Communications, and is a Digium Select Partner and 2013 Pinnacle Award winner. TeleDynamic Communications provides turnkey premises-based PBX and hosted PBX, SIP trunking and Unified Communications. Randy Kremlacek prides himself on knowing the telecommunications industry as well as he knows his way around his own kitchen. READ MORE

 

 

Randy Kremlacek

Topics: SIP Trunking