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9 Ways to Cut Communications Costs with SIP Trunking

Save money with SIP Trunking

Replace PR1 and T1 trunks and save up to 70% monthly.

Whether you’re using a modern IP PBX, traditional TDM PBX or analog key system, SIP Trunking can give you financial as well as functional advantages over traditional connections like T1s or PRIs. That’s because SIP Trunks are virtual connections, which support multimedia (voice, video and web) communication over the Internet outside of traditional telephone networks, giving you more capabilities at less cost.

In fact, if your organization needs to scale your phone system, add features and support long-distance calling, you’re likely to realize significant cost savings.

How Can You Save With SIP Trunking?

Sound interesting so far? It gets better — here are nine ways you can cut your communications spend with SIP Trunking:saving money icon

  1.  Smaller Price Tag: Right out of the gate, SIP Trunking is less expensive than traditional connections.
  2.  Incur No Capital Costs: SIP Trunking requires no capital investment and has minimal upfront costs, so you appreciate cost savings from the first monthly billing statement.
  3. Cut Connection Costs: SIP Trunking eliminates the need for traditional POTS lines or PRI/T1 trunks, which can save up to 70 percent on your company’s monthly phone bill.
  4. Pay Per Call Path: SIP Trunking allows your business to deploy and pay for only the concurrent call paths you need instead of being forced to buy PRIs in bundles of 23 channels at a time whether you need them or not.
  5. Lower Long-Distance Rates: Both domestic and international long-distance calls are much cheaper over SIP Trunks than regular PSTN calls.
  6. Call Internally for Free: Internal calls between your employees at your various office locations are free with SIP Trunking.
  7. Preserve Current Investment: SIP Trunking also modernizes your existing phone system by connecting it to a cloud PBX that offers real-time communications services, such as call recording. With these instant feature upgrades, SIP Trunking enables you to preserve the capital investment in your phone system for months or years.
  8. Slow Roll the Move to Cloud: If desired, you can gradually migrate to company-wide cloud PBX or Unified Communications as a Service (UCaaS) solution. With Broadvoice’s Elastic SIP Trunking, for example, you can transition to cloud PBX or UCaaS by location or department as your needs and/or budgets allow.
  9. Pool SIP Trunks: By aggregating SIP trunking resources across your locations, you can reduce overall costs.
If saving money is wrong, I don't want to be right!
William Shatner

How Can You Save Even More with SIP Pooling?

SIP pooling is a great cost-saver if your business has multiple locations. Rather than provision to peak demand at each location, you can “pool” concurrent call sessions across multiple sites, which reduces the total number of SIP trunks required.

For example, if your company has 10 locations that each require a peak call capacity of 40 concurrent calls, you typically would require 400 total SIP Trunks. Most likely many of those trunks would be underutilized, so you’d end up paying for more SIP Trunks that you really need. But with SIP pooling, capacity is allocated at a companywide level, which saves you money by more effectively distributing calling resources across the entire business.

Your 10-location company with 400 trunks likely would be able to reduce its SIP Trunk count to around 260. Depending on the price of each trunk, that could Business growth chartsave anywhere from $3,500 to $5,000 monthly.

With savings like this it’s no wonder the SIP Trunking market is expected to top 53 million trunks by 2021, according to researchers at IHS Markit.  

Keep in mind that not all SIP Trunking services are equal. Many service providers don’t offer SIP pooling like Broadvoice does.  

If you’re using an on-premises phone system and are interested in learning more about how SIP Trunking can save your company money, please reach out to us for help with a cost-benefit analysis. It’s fast and you’ll be pleasantly surprised at how SIP Trunking can right size your communications spend. 

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