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How Much Does SIP Trunking Really Save You?

By September 8, 2016 Voip

One of the things we all know about SIP Trunking is that it saves money. Big money. We have seen as much as 50 percent savings with some trends that are higher for multi-location organizations, particularly Retail, and more particularly those who operate locations outside of Canada.

What is SIP Trunking?

A SIP trunk is a flexible, virtual ‘trunk’ or ‘virtual phone line’ that allows you to make and receive local and long distance calls over an IP connection eliminating costly investment in dedicated voice trunks. Session Initiation Protocol (or SIP) is used to open a secure channel on an IP connection to deliver voice calls.

If you look at just savings, you are missing the benefit of SIP altogether. Originally phone lines came out as analog lines. Years new line types like the digital voice PRI, or Megalink (Voice T1 to our American friends) became available. It was not about one being cheaper; it was about being better, far better.

The reality was at 13 Analogue lines, the business case for digital trunks kicked in. The digital line quality was far superior, and volume was better, DID’s or individual dial phone number for each employee was now possible. It was just better but, you needed line cards to support it.

Here is a good example. A multi-location Office.

Let’s use an example of a head office in Toronto with 5 Branch offices across the country (or North America, or the World). The current model is simple, x phone users and y phone lines repeated over the number of offices that you have.

Assume that location 1 (head office) has 30 phone lines and Locations 2 – 5 (remote) have 5 phone lines each (for a total of 55 Lines).

Under the model of the old way (analog or digital)

There may be up to 4 Phone companies with 5 independent phone bills for each of these sites. Especially if they are located across different carrier markets.

When you look at it a complete system there are 55 Lines provisioned when in reality, globally there may only be up to 20 call paths used collectively at any one time.

If one of the remote locations, which has 5 phone lines, has a 6th call, it will ring busy, even if ample capacity exists at each other location. Under the current model, all sites behave independently.

What would it look like with SIP?

For starters. Greatly simplified billing with one provider (Frontier). and twice the clarity of ordinary phone calls for life-like, vibrant conversations for inter-site calls.

Where in the past there where 55 Lines provisioned since only 20 are actually needed, you just need to get 20. All sites will ‘share’ capacity.
If you need more capacity, you simply ‘burst’ to use the channels that you need.

Other benefits?

  • No busy signals (ever)
  • No waiting for an outbound line

You can see where the cost savings are obvious.

SIP channels are less than traditional phone lines. They can be ordered one at a time as opposed to a grouping of lines. The Long Distance rate incurred over these trunks are less and the big one – Since your sites are sharing capacity you will need fewer lines overall.

With a phone call, you can add or remove capacity to match fluctuations in business call volume on the fly (to accommodate seasonality within your business).

Remember one thing. If you current equipment provider is your phone company asking them about SIP trunking is analogous to asking your spouse to be your wingman at a bar. Never a good idea. The discussion of SIP trunking often does trigger a wall of upgrade costs, line cards that are often unnecessary.

The phone companies tend not to be entirely objective on this entire topic.


About Frontier Networks


Frontier Networks Inc. is headquartered in Toronto, Ontario and provides Broadband Internet or MPLS, Voice lines or Cloud PBX (a replacement to old phone systems), cloud servers , colocation and our new Physical Security offering to Canadian Retail and Multi Site customers who demand world-wide coverage from a ‘new’ network. “We like to do traditional things in a non-traditional way”.  Frontier has built a network that connects to other networks. Think of them like a large ‘backbone’ of interconnected networks. They connect to every phone company, cable company, wireless and hydro/utelco in Canada and the US through a series of well-connected Points of Presence (POPs). Simply put ‘we don’t suck’.

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