Spotlight on SIP Trunking Part 2

Posted: April 29, 2011 in Uncategorized
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In last’s month’s bog, Spotlight on SIP Trunking Part 1, we spoke about what SIP Trunking is and what it means to your business. In this final installment we will discuss when it is wise to implement based on your business needs and goals.

Three factors weigh heavily in the decision to implement SIP. They are Features, Potential Cost Savings and Functionality. Let’s address each separately.

Features are fine but what’s really important is the application and how it benefits your organizations’ bottom line. Some of the primary features of SIP Trunking are:

  • The service is location agnostic. You can have telephone numbers from anywhere in the world appearing on your phone system. This is beneficial if you wish to project a presence in a local area although your company is located elsewhere.
  • Direct in Dial (DID) numbers are readily available. Any or all of your telephone extensions can have a unique 10 digit number. That number could be local or from any area code in the country.
  • Find Me Follow Me is a feature allowing your DID number to ring your office phone, cell phone and any other number of phones simultaneously. A more practical application would be to ring the office phone and then ring other assigned numbers if the call is not answered.

Potential Cost Savings are realized the following ways.

  • Average monthly savings can range from 30-60% less than comparable service. The keyword here is comparable. If you replace 8 analog loop start (also known as P.O.T.S.) lines with SIP trunks you will see the savings. If you decide to eliminate your 8 P.O.T.S. lines and give each of your 40 extensions individual SIP trunks, you most likely will see a cost increase. Individual SIP trunks may make sense if you have a small number of extensions. If not, the cost savings may never be realized.
  • Long distance is typically less than $0.025 per minute
  • As a VoIP service, SIP is not yet subjected to the same telephone related taxes that traditional dial tone and long distance services are. This may change in the future.
  • If your company uses the same SIP provider, calls between the locations are usually at no charge

Functionality can be a blessing and a curse. The blessing is that SIP is cloud based. Changes to most features, primarily, call forwarding functionality can be accomplished by the user over a web browser. Most users have their DID number ring to their cell phone in the event of an internet failure. Additionally as a cloud based service, there is no interaction with the local telephone company. Issues concerning bad wire pairs from the telephone company which result in static, cross talk and dropped calls don’t exist. SIP trunks are delivered by your internet service provider.  

The curse is that SIP is internet dependant. Call jitter and latency affects call quality as well as reliability. Overall quality, while usually acceptable, is not yet on par with land lines.

Implementing new technology is neither easy nor clear cut. SIP trunking is heralded by many as the future of carrier services, at least until a new technology arrives. In any event it is a technology that should be seriously assessed when considering a modernization of your telecommunication services.

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