SIP Trunking for Dummies: Save Money by Switching to Digium

Posted by Randy Kremlacek on Apr 6, 2012 8:13:00 AM

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SIP Trunking: Open Source PBX Phone SystemThe Secret is Out

It’s no secret that increasing numbers of organizations are saving money by going to SIP Trunking. Old PBXs use analog lines and PRI circuits to make and receive phone calls to the outside world. These old-style connections to the phone company are growing more expensive as the carriers such as AT&T, Verizon, TelePacific, etc. continue to raise their prices.  Additionally, users are required to pay usage charges measured by the minute. So, businesses are exploring alternatives to save money.

SIP Trunking will Save You $$$

SIP Trunking is the answer – it’s a form of VoIP that uses a data circuit for making and receiving phone calls.  The cost per month is substantially less and many of the SIP Trunk providers allow unlimited inbound and outbound calls.

So, what’s not to like about this wonderful new service? I’ve noticed many instances where buyers went down the path of acquiring an open source PBX, thinking that it was the only way to support SIP Trunking.  While it is true that open source PBX’es such as the Digium Asterisk is based upon the SIP technology, it may or may not be the best solution.

The open source PBX is a do-it-yourself phone system. It requires the buyer to download software, build a PBX server and provision telephones and SIP Trunking. That sounds technically challenging, right?  Well, it certainly is something that we would not recommend to the typical IT administrator. Building your own PBX requires an intimate knowledge with Unix, command line programming and a clear understanding of call handling parameters. And after the system has been built, tested, deployed and users trained, the IT person now has the added title of “phone company”.  As the PBX vendor and the traditional phone company has been eliminated, the customer now is responsible for all the aspects of maintaining a working communications solution.

This makes it sound like way too much time, training and risk to save money on phone calls. However, it doesn’t need to end this way. There are providers of packaged SIP PBX’es (such as Digium, the maker of Switchvox) that don’t require assembly from scratch. And there are many phone system vendors who package these SIP PBXes with installation and support services, thus providing a turnkey solution.

How Much Money will SIP Trunking Save You?

So, just how much money will it cost to save money with SIP trunking?  The good news is that the Digium Switchvox and like systems are very affordable these days, much less than you paid for your last PBX.   Unlike Shoretel, Cisco, Avaya and other proprietary non-SIP PBXes, the Switchvox doesn’t require costly licenses and multiple servers. And, SIP telephones are less costly than proprietary telephones. Lastly, many customers choose to lease the equipment, with the monthly lease payment typically being far less than the savings of converting to SIP Trunking.  We have many customers who’ve slashed their monthly telecom expenditures while enjoying all of the benefits of a new PBX.

If you'd like more information, give us a call today to chat with one of our PBX specialists!


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About the Author

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