What Are the 9 Benefits of SIP Trunking?

Voice over IP (VoIP) phones is becoming the most common way for organizations to manage voice communications. The adoption of VoIP and SIP Trunking enables organizations to save on costs.

Organizations that are considering ways to save on their phone bill may consider SIP Trunking as an option. With a cloud telecommunications provider for SIP services, the initial investment is minimal.

What is SIP Trunking?

SIP Trunking uses Internet Protocol (IP) to allow organizations to make calls over the public switched telephone network (PSTN). SIP Trunking technology requires an Internet connection or VoIP provider, an IP-enabled Virtual PBX, and a gateway element to support IP-based voice communications. By using SIP, voice becomes an application on the web, just as email or the web is an application.

SIP Trunking is a set of protocols delivered through a telecommunications provider that allows businesses to take advantage of the benefits of Internet-based phones.

What Are the 9 Benefits of SIP Trunking?

Organizations considering the move to SIP Trunking are often familiar with its potential for cost savings. If a business makes a lot of long distance or international calls, it can save a great deal compared to traditional phone service.

1) Cost Savings

With traditional phone service, an organization is subject to different charges for its local, long distance, and international calls. SIP Trunking allows businesses instant access to affordable prices that are generally billed per user.

Organizations that switch to a SIP provider enjoy predictable monthly costs. A study found that the average company that made the switch to SIP saved 50% each month, although that figure is typically much higher for companies with a high volume of long distance and international calls.

2) Immediate ROI

Sometimes investing in technology is a gamble due to the lack of ROI case studies. Fortunately, SIP is a well-established technology with minimal initial investment costs. Without a capital investment, organizations switching to SIP start to see cost savings from the first monthly statement.

3) Scalability and Global Potential

SIP supports the need for a rapidly growing organization in multiple geographic locations. By combining voice and data in a single network, the geographic locations of the company and remote workers can be consolidated. The rapid scalability of SIP also allows an organization to scale with extreme flexibility as it opens new sites or establishes full-time remote workers.

4) Mobility

SIP enables organizations to connect employee mobile devices through flexible and easy-to-use VoIP applications that can be securely installed. This allows remote workers to remain connected to their facility-based communication systems and fully accessible at all times via a single dedicated business phone line. The mobility attributes of SIP Trunking and VoIP also allow companies to maintain communications without Internet connection failure.

5) Consolidation of the Network

Most companies continue to pay for voice and data phone service separately, even when they use only one provider. SIP Trunking allows organizations to move their voice and data to a single network, treating voice calls as a form of data transmission.

While this will increase bandwidth demands on the data connection, it will ultimately save a significant amount of money and increase reliability, especially with fiber optic Internet connectivity.

6) No More Physical Phone Infrastructure

Remote employees or people working from home often need a company-provided mobile device, which is another investment by the organization, to communicate with their colleagues. With SIP Trunking, the business can add phone lines simply by connecting phones to its data connection. People who work outside the office can join the company network and be contacted using a dedicated internal phone number and a five-digit extension.

7) No Expensive Hardware Investments

SIP Trunking does not require an additional investment in hardware. With a SIP provider, adding phone lines or ancillary services is as simple as buying an additional phone and escalating the monthly service contract.

8) Reliability

Although traditional telephone service can be interrupted due to various events, SIP Trunking is a reliable technology, so that the phones can be used for communications even in the event of a failure by allowing calls to be routed to other offices or mobile devices of the employees.

9) Simple Management

SIP Trunking and VoIP phones offer easy-to-use panels for on-site administration, including actions such as adjusting call routing, changing extensions, or adding phone lines on demand.

How Do You Know if SIP Trunking Is the Right Choice for a Business?

SIP Trunking is the right choice for many organizations that are ready to take advantage of the benefits of Internet-based phones and establish a relationship with a hosted VoIP provider and move their corporate communications to the cloud. If a business has ever struggled with confusing monthly phone bills, unreliable phone lines, high call costs, or balancing on-site phone lines with employees’ mobile devices, it can benefit significantly from making the switch to SIP.