In recent years, many businesses have adopted Voice over Internet Protocol (VoIP) as the standard of unified communications without a second thought to how they will scale their communications.

While VoIP certainly offers strong benefits for small and large businesses, often this integration of technology fails to optimize for a business’s specific needs and overlooks opportunities to reduce waste.

One such way to gateway your VoIP wiring is called Session Initiation Protocol (SIP), and besides lowering your bills, it bundles your expenses into a single, simple pricing to account for local, long-distance and international calling. This means rather than looking at a bulky, itemized phone bill each month, you’ll see a consistent, predictable total on each statement.

Let’s look at how SIP Trunking works and how it can benefit your business.

What is SIP Trunking?

SIP Trunking is a method that business phone systems can make calls using an internet connection instead of a traditional phone line. Because it’s digital, SIP Trunking costs less and scales better while offering all the same benefits of any digital voice service.

Unlike traditional voice systems, analog phones or digital primary rate interface (PRI), SIP Trunking does not require a costly infrastructure buildout. Instead, SIP is a gateway that can be built upon an existing VoIP hardware or PRI network with minimal investment costs, as you can simply work with a SIP provider the way you would work with a phone company.

Because SIP operates on top of existing infrastructure while still consolidating voice and data, it’s popular among growing businesses who do not wish to invest in physical hardware. On-site and remote employees can access the SIP phone lines simply by connecting handsets to the company data connection. Using SIP, voice becomes an application on the IP Network, like email or web.

How does SIP Trunking save on costs?

Depending on your specific telephony needs, SIP Trunks can help small and large businesses in a number of ways. Besides the minimal investment to launch SIP Trunks, by using the consolidated voice and data service, you veer away from costly phone lines or T1 connections.

The first place you’ll notice your savings is on your phone bill. Through the unified voice and data bundling, a SIP connection will reduce the amount of clutter on your bill and instead show one, simple internet bill. Some businesses save up to 50% of their monthly voice costs.

With a SIP Trunk, you’re reducing the number of incoming phone lines you require, which will show an immediate impact on your phone bill. All you’re paying for are the number of minutes spent on the phones.

For many organizations, a SIP trunk could suffice to replace their phone costs entirely. Other, larger businesses may benefit from adding a SIP Trunk over their existing VoIP services to save on costs.

To learn more about how SIP can enhance your business communications and as well as learning how much you stand to save with SIP Trunking, complete our telecom assessment form and we’ll introduce you to the right options, vendors and handsets for your business.

SIP Trunking Explained: Reducing Business Phone Costs

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