The Future of Business Communication: VoIP SIP Trunking Explained
In today’s business communication, more and more modern aspects have occurred. Unlike the old days when business communication was comprised only of voice calls. Now, voice and multimedia communications are used widely to satisfy the needs and wants of potential clients.
The traditional phone system is incapable of delivering modern digital methods for communicating. This is why VoIP SIP Trunking systems have started to take place. SIP system or Session Initiation Protocol enables voice and multimedia communications using internet protocol networks. There are no traditional phone lines during this mode of communication.
This system uses SIP as an application-layer protocol for establishing and terminating communication sessions. These communication sessions can be between unlimited endpoints. The SIP tends to control unlimited channels for communications.
What SIP Trunking Stands For?
SIP trunking combines two words. SIP stands for Session Initiation Protocol, and trunking stands for consolidating multiple communication channels into a single one. When combined, it becomes a technology that is a virtual phone line for making and receiving phone calls.
These calls can conveniently use voice and multimedia calls. It includes voice, video, and messaging over the same channel. This technology is replacing the ISDN phone lines very rapidly. For example, if an office uses the traditional PBX phone system and wishes to connect to the world in terms of communication. SIP trunks using that PBX phone system with Internet Protocols allow businesses to connect with the outside world.
Do You Know How SIP Trunk Works?
Since you have heard about the SIP trunk system, let us shed some light on How Do SIP Trunks Work. To answer this, SIP trunking is an intermediary that connects your business to the Internet Telephony Service Provider. This system is designed to provide the users with the best working conditions along with replacing the traditional phone system from the equation.
The Internet is used to transmit data from sender to receiver in the form of data packets. These data packets contain vital information for the business. In addition to data transmission, SIP trunking creates a bridge between your on-premise phone system (PBX) and the Internet Telephony Service Provider.
Transitioning To SIP Trunking: The Required Devices
The number of devices and systems required to successfully transition from the traditional phone system to this modern-day phone system. The items required make it the Cheapest SIP Trunk.
Internet Connection
SIP-compatible PBX System
VoIP Phones
VoIP Adapters
Network Connection
Internet Connection
The most important aspect of converting from the traditional phone system to this modern phone system requires a stable and reliable internet connection. It is crucial for this form of communication because the data is transmitted in the form of data packets that can only be transmitted over the Internet. Once a stable and reliable internet is possessed, communication between businesses and the world becomes cost-effective and efficient simultaneously.
SIP-compatible PBX System
PBX is a system that lets your traditional phone system operate. Once a business or organization is transferred to the modern-day communication mode, this PBX becomes a part of the past. How about using this system and converting it into a modern-day communication tool for business? SIP has tools that make it a compatible option for the PBX system, but it needs to be upgraded.
VoIP Phones
VoIP phones are an essential part of this modern communication mode. These phones are essential for establishing a connection between a sender and a receiver. Moreover, an organization must have SIP-enabled phone systems to enjoy this system.
VoIP Adapters
Suppose an organization is reluctant to make changes to its existing phone system, which is not compatible with SIP trunking. The modern phone system comes with a solution to this problem. VoIP adapters are used to convert these traditional phones to the modern phone system.
Network Connection
Network connections are vital in letting the data travel over the internet.
SIP Trunking And Small Businesses
SIP trunking is a suitable option for both large enterprises and small businesses simultaneously. Small businesses typically use traditional phone system that operates on the PBX phone system. What if the small-town business wishes to expand its customer base worldwide? However, the cost of communication is unsuitable for a business that wants to go international.
This is where SIP trunking comes in handy. This modern phone system does not require physical lines, additional hardware purchases, or installation for the business to connect to the world. Moreover, it lets you easily add new phone lines or modify your phone service without disruptions or buying new hardware.
SIP Trunk Providers
Here is the list of the SIP trunk providers. These SIP Trunk Providers In the USA offer a wide range of services for businesses, freelancers, and small businesses.
- Onecloud Networks
- Nextiva
- Twilio
- Plivo Inc.
- Vonage
- Verizon
- 8×8
- RingCentral
- VoIP
- VoIP traffic
- Us, LLC
- Net2Phone
- AVOXI
- Callcentric
- Lumen Technologies
- Digium
- Insider Telecom
- MegaPath
- Skyetel
- UniTel Voice
- Bandwidth
- Monster VoIP
- Telnyx
- Flowroute
- Broadvoice
- Fusion Connect, Inc.
- nexVortex
- MightyCall
Difference Between SIP And VoIP
SIP and VoIP technology are falsely co-related to each other. But in reality, they are not the same technology. They have their own paradigms, and they operate on different parameters. Let us explain the common differences between SIP Trunking Vs. VoIP.
VoIP
Voice over Internet Protocol uses a stable and reliable Internet connection to make calls and receive them over the same medium. This system does not require an analog phone system or lines. The data transmission is done over the Internet.
SIP
On the other hand, SIP uses SIP-enabled PBX phone systems to connect the organization to the world. The data transmission is done by using VoIP phone system services.
SIP Trunking Architecture
SIP Lines or SIP Circuit uses a session border controller to connect the SIP trunk with an on-premises phone system.
- It requires encryption for making voice calls
- Encryption is used to meet security needs
- The routing of calls to emergency services is allowed
- It can be done with the feature of caller location information
- It protects against toll fraud
- It offers protection against denial-of-service (DoS) attacks
- It offers performance reporting
- It comes with a usage report for decision-making
- It provides virtual inbound phone numbers
- The virtual inbound numbers include 800-number services
SIP Trunk Pricing Types
The SIP trunk pricing is further divided into five segments. The names of these segments are mentioned below.
- Per Channel SIP Trunk Pricing
- Metered SIP Trunk Pricing
- Elastic SIP Trunk Pricing
- Per SIP Trunk Pricing
- Block SIP Trunk Pricing
Per Channel SIP Trunk Pricing
In this form of pricing, the users have to pay per bundle of lines. In addition to the line, the users have the option of paying per channel. Moreover, this pricing schedule offers more flexibility and scaling options for both upward and downward.
Metered SIP Trunk Pricing
In this metered pricing model, the users have to pay according to their usage. To elaborate more, the users only have to pay for the minutes they have consumed, unlike the unlimited pricing option. This model is perfect for start-ups and small businesses as they have budget constraints.
Elastic SIP Trunk Pricing
In the elastic pricing model, it is termed as an unlimited option for businesses to use the phone system. But in reality, the unlimited option for business is limited to anywhere between 3,000 to 3,600 minutes per month. This call option is perfect for businesses whose sales departments have to make tons of calls per month.
Per SIP Trunk Pricing
Now, coming towards the Per SIP pricing model, this option is known as the traditional pricing model. When choosing this option, every business must consider that the billing for this option is flat. They have to pay a single amount for the bundle they are going to consume during the month. The price for this bundle goes anywhere between 10 to $60 per trunk.
Block SIP Trunk Pricing
In the end, we have a block SIP pricing model, where every business purchases a block of minutes from their service providers. This option is feasible for businesses with a clear idea of how many minutes they will consume per month for making calls. In addition, every business can purchase additional blocks as per their requirements.
Miscellaneous Fee Associated With SIP Trunk
Businesses who are opting for SIP trunking for their call centers must consider additional costs that are going to be incurred with additional features. There are a large number of VoIP phone providers who do not charge setup costs from their clients. However, there are some service providers who do charge setup costs from their prospects. And for this reason we bring you a list of the cost associated.
- Setup Costs
- Security Fee
- Portability Fee
- Enhanced 911 – E911 Fee
- 411 Directory Fee
- Federal Universal Service Fund Fee
- PBX Configuration Fee
- Regulatory Recovery Fee
- Call Forwarding Fee
- Load Balancing Fee
- Bursting Fee
- Toll-Free Lines
- DNIS/ANI Fee
- Direct Inward Dial Fee
- Maintenance Fee
Setup Costs
This is a one-time cost that some service providers charge from their prospects. All implementation, testing, onboarding, and other services are included in this cost. The cost may vary according to the service provider.
Security Fee
Some service providers charge a security fee from their clients. In order to enjoy the services, these security fees cover all risk factors.
Portability Fee
This is a fee that is being charged by clients in order to carry all the business’s previous numbers from the traditional phone system to the SIP system.
Enhanced 911 – E911 Fee
This is a fee that has been imposed by the government as a legal requirement since 2005. With this fee, the service provider makes sure that you are connected to all the emergency services under your location.
411 Directory Fee
Every business must update its information and notify all the directory services. The service provider charges the directory fee to manage these tasks.
Federal Universal Service Fund Fee
This is a fee that the Feds have charged. The Federal Communications Commission charges this fee to all businesses. The rate for this fee is 15% to 33% of a business’s total service fee.
PBX Configuration Fee
This is the fee charged by the VoIP service provider to cover all the expenses for synchronizing your modern phone system to your traditional phone system.
Regulatory Recovery Fee
The regulatory recovery fee is based on the local and state sales taxes. These charges are on a monthly basis charged per line per month.
Call Forwarding Fee
The service provider charges this fee for forwarding your calls to other numbers.
Load Balancing Fee
This is a fee that your service provider is charging. It is charged to distribute heavy call traffic across multiple servers.
Bursting Fee
The bursting fee is charged on the basis of extra channel usage. This happens when a business makes more calls than the anticipated calls.
Toll-Free Lines
This flat fee will be charged if a business requires toll-free lines from the SIP service providers.
DNIS/ANI Fee
DNIS stands for Dialed Number Identification Service, and ANI stands for Automatic Number Identification Service. These services carry all the caller’s information. For this reason, the service provider charges businesses this fee.
Direct Inward Dial Fee
Every business tends to enhance its performance. For this reason, they assign a Direct Inward Dial number to any of their team members to look after the matter pertaining to the SIP system. This fee is charged against enjoying the services of Direct Inward Dial on your PBX.
Maintenance Fee
The maintenance fee is charged to every business so that they can enjoy a seamless business solution for all their communication needs. This fee is charged based on maintaining an on-premises PBX system.
Advantages & Disadvantages Of SIP Trunking
To simplify your business communication system requirements, this SIP trunking system plays a vital role. For this reason, we bring you a detailed analysis of the advantages of the SIP trunking system.
Advantages
Cost
When you compare the cost of operating this system with that of the traditional phone system, this system offers a tremendous cut down on the costs for every business. This allows every business to utilize its communications budget for other aspects of its business.
Savings
When any business compares the savings they enjoy by adopting this system, they are tremendous. Especially those businesses that operate offices in remote locations and must make long-distance or international calls daily.
Efficiency
You cannot monitor your business and sales team’s performance with a traditional phone line system. However, things are not the same with the SIP trunking system.
Presence
SIP trunking system allows every business to create its own virtual presence. It lets the business owners decide how and when they avail the system features to benefit their organizations. Every business can enjoy audio, video, and text messaging options to enhance their presence 24/7.
Growth
SIP system lets businesses enjoy centralized communication. This allows the business to keep an eye on the team’s performance and business growth. With growth, the requirements for the business change with time. Rapid responses and timely actions provide a solid ground for businesses to enjoy unmatched growth.
Scalability
SIP offers upward and downward scaling options for businesses. With this system, you now have the option of controlling and managing multiple locations of offices at the same time.
Reliability
Traditional phone systems are prone to disruption in services. There are many reasons for disruptions. Among them, phone failure and bad weather are the leading causes. Unlike SIP trunking, VoIP boasts reliability as these systems are cloud-based, offering the fastest and most reliable options for business.
Real-Time Data
This system provides the users with a detailed reporting dashboard that contains real-time data. This information plays a vital role in determining the performance of the business and its teams.
Disadvantages
A few disadvantages are linking to the SIP trunking. We bring you these to provide you with an in-depth insight into the performance of these systems.
Internet Connectivity
SIP trunking and VoIP phone systems rely heavily on the internet connection. The internet system is used to transmit packet data over the network. For this reason, these systems emphasize having a reliable internet connection to enjoy the services offered by these modern phone systems.
If your internet is disrupted or it goes down, your phone system will not operate, leaving you in a state of misery.
Quality Issues
Since VoIP and SIP phone systems operate on the Internet, some issues relating to the overall voice quality are observed by the users. These concerns include latency and jitter. And in some cases the whole data packets containing information are found missing during conversations.
Security Vulnerabilities
All internet-based communications are prone to cyberattacks. The data is transmitted in data packets, making it an easy catch for hackers to gain access to it and steal vital information related to business.
Power dependency
SIP phone systems rely heavily on electoral power to operate. However, traditional phone systems do not rely solely on the power. They are analog phone systems.
FAQs
- What is SIP trunking vs. VoIP?
Like VoIP phone systems, SIP trunking is a virtual phone line. The main difference between VoIP and SIP is that it only supports voice, unlike SIP, which supports voice, video, faxing, and messaging. Moreover, both systems transmit data in the form of data packets.
- What is an IP SIP trunk?
IP SIP trunking is a process in which calls are routed using PBX and then to the SIP trunk system. Further, this system removes the traditional phone lines system from the equation.
- What is the difference between an IP trunk and an SIP trunk?
The main difference between an IP trunk call and a SIP trunk call is that IP trunk calls are made using the internet network. However, the SIP trunk can transmit calls across any network.
- What are the disadvantages of SIP trunking?
The main disadvantage of SIP Trunking is that it requires internet bandwidth. Further, it is recommended that business fiber internet supports the best quality of services. They require additional network security. Moreover, the overall quality of the call depends upon the hosted VoIP services.
- What is SIP trunking for dummies?
SIP is an acronym for Session Initiation Protocol. It is a system that depends upon the internet to transmit packet data. In addition, a PBX is required to transmit data along SIP channels over the internet in SIP trunking.
- Do all VoIP phones use SIP?
No, VoIP phone systems do not require SIP trunking to transmit data if voice communication is the only result.
- What is an example of a SIP trunk?
SIP trunks are designed to transmit all inward and outward communication. It creates a bridge between the corporate network and multiple data networks.
- What is the purpose of SIP in VoIP?
The Session Initiation Protocol defines the actual elements of the call and the messages. It is used as a signaling protocol for Voice Over Internet Protocol.
- How many calls can one SIP trunk handle?
There are no leaps and bounds for the SIP trunk to accommodate calls. If your business is making 30 calls at a time. SIP trunk will accommodate these calls using its channels.
- What are the benefits of SIP trunking?
Some of the benefits of SIP trunking are that it reduces installation costs as well as setup costs. Further, it requires a reliable IP network to connect with the network and the telephone system.
- Is VoIP SIP trunking free?
No, SIP or Session Initiation Protocol trunking is not free. But, the charges vary anywhere from $1 to $2 per user, making it a very affordable system for business networks.
Verdict
Businesses are adopting more and more technological advancements to boost their sales and performance. For this reason, modes of communication are a hot topic among business owners. The overwhelming costs for communication are the real pain for business owners.
This is where VoIP and SIP trunking come in handy. VoIP SIP Trunking is the talk of the town. We bring you a complete insight into how both these systems can impact your business positively. In the end, let us explain when you can use the VoIP phone system and where SIP trunking comes in handy.
To achieve the best results for your organizational communication, the SIP trunk works perfectly well with the IP PBX. Additionally, if your organization operates a complex routing system that shows queueing, it would help if you had the cloud-hosted VoIP for your business to ensure that routing and queueing shortcomings disappear.
