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sip trunking pricing

SIP Trunking Pricing: How To Cut Costs

Looking to cut costs in your business? Enter SIP Trunking.

This is a cost-effective alternative to traditional phone lines. SIP Trunking is a cloud-based, managed service that routes calls over the internet instead of a dedicated circuit or copper landline.

When you switch to SIP Trunking, you get all the benefits of VoIP at a lower cost than traditional PBX systems.

Because it’s built on your existing broadband connection, SIP Trunking works anywhere as long as you have an Internet connection.

It can easily be integrated with other technologies, such as video conferencing platforms or virtual desktops.

In this post, we’ll review SIP Trunking, and why it’s essential for your organization. We’ll also discuss how it can boost efficiency, what you need to know about it, and how to cut costs when switching from traditional landlines to SIP trunks.

Your Power Tool For Telecom Cost Control 

According to Gartner research, SIP trunks can reduce telecom costs by 50% and simplify billing to save significant money. Approximately 40% of telecom spending is devoted to billing.

Many businesses are turning to SIP technology because it has many benefits over traditional POTS lines. In a survey by Nemertes, 41% of 600 companies that had adopted SIP trunking mentioned cost savings as the biggest motivation.

Here are a few ways why SIP Trunking is a game changer when it comes to business communication cost optimization.

Makes Use Of The Internet 

SIP trunks use the internet to complete calls through VoIP (Voice over Internet Protocol). This allows you to make and receive calls without leasing expensive physical lines from your service provider.

sip trunking pricing

Leverages Your Current Phone System 

With SIP Trunking, your business’s existing PBX (private branch exchange) will still function as usual. However, all incoming and outgoing calls will be routed through VoIP instead of traditional landlines or cellular networks.

This makes it possible for your employees to make calls from anywhere worldwide as long as they have an Internet connection.

Eliminates Expensive POTS 

There’s no need for expensive, Plain Old Telephone Service lines (POTS). Instead, SIP trunks use internet technology to complete calls through Voice over Internet Protocol (VoIP).

This maximizes your existing phone system and connects it to a cloud PBX.

Reduces Rates Per Minute 

SIP also offers lower rates for per-minute calling. This cost can be even lower on metered plans, depending on how many minutes you use each month.

That’s because you only pay for the minutes you use, rather than paying a flat rate every month, regardless of how many minutes you use during that time.

SIP Trunk Pricing Options 

SIP trunk pricing can be divided into two main categories: cost-per-channel and usage-based pricing.

Cost Per Channel 

Cost per channel (also known as cost per trunk or CPT) is the simplest option. You pay a flat monthly fee for each trunk you use, regardless of how many calls travel through it.

This type of plan is ideal if you have a small number of trunks and make a few calls over one month.

Usage-Based Billing (UBB) 

Usage-based billing (UBB) charges customers based on how much they use their services throughout each billing cycle.

sip trunking pricing

This is a better option than charging by the minute because it gives businesses more control over their budgets.

You Can Reduce Costs By Choosing The Right Provider 

When comparing different VoIP providers and considering which ones are right for your business needs and budget, there are several factors to consider:

Customer Base 

The first thing you should look at is their customer base. Ensure they are reputable and have the experience needed to meet your company’s needs.

Check if they have testimonials and reviews – this is an effective way to see what previous customers have said about their quality of service.

Pricing Structure 

As with anything else, the price can be essential in choosing what company will handle your telecommunications services. Just because a provider has the cheapest rates doesn’t mean they’re the best fit for your business or budget.

It would be best to compare all the costs associated with each provider before deciding where your dollars should go.

Technology 

You should ensure that the provider has the latest tools and technology. This is important for future use as your company grows.

Support 

Make sure prospective telecom providers offer 24/7 technical support. This is so that connectivity issues don’t disrupt the productivity of your staff, or, your clients.

Other Ways To Cut SIP Trunking Costs 

SIP trunk pricing is more complicated than traditional landline or cellular phone service. While you can still get a flat rate for unlimited calling, many other variables affect the cost.

sip trunking pricing

Monitor And Log Usage 

Tracking your usage is the first step to understanding where your costs are coming from. You need to know how much you’re spending on the SIP Trunking service on a month-to-month basis and how much each user is costing you.

You can use this information to customize your call channeling and policies, reducing your overall service cost.

Customize Call Channeling 

How you distribute calls over your SIP trunks will also significantly impact how much it costs to operate them.

If you have too many calls routed through one trunk, it will significantly increase the amount of money you’ll spend on that trunk. If you have multiple trunks with similar call volumes, channeling calls evenly between them will help save money.

The Cost Of Your Internet Connection 

If you have a high-speed fiber optic connection, you may save money by consolidating traffic over that. However, suppose you have an Asymmetric Digital Subscriber Line (ADSL) or cable connection shared among multiple users in an office building.

In that case, it might not make sense to consolidate your voice traffic over this connection. This could reduce service quality for everyone who shares it with you.

Take Advantage Of Bundling Options 

Bundling can be a great way to save money on your SIP Trunking. If you’re buying two services from the same provider, it makes sense for them to give you a discount.

For example, if your business needs both phone service and internet, you can get one bundled with the other at a lower rate than they would charge separately.

sip trunking pricing

Buy Trunks By The Channel Instead Of By The Trunk 

If you have a small call volume, you may want to buy your trunks by channel rather than by trunk. This is because channels can be shared between multiple trunks, which means that if you have just one trunk, you’ll be paying for your trunks on a per-trunk basis.

However, if you have four or five channels and over 1000 calls per day, it makes sense to buy these channels in bulk so they can all be used by multiple trunks.

Use Your Existing PBX System 

When considering upgrading your PBX system, there are several ways to save money and time on the upgrade.

One option is to use what you have on hand. The old equipment still has value if it’s in good shape, so why not keep using it?

This can be affordable if your current equipment is still functional and compatible with your new phone system.

Conclusion 

SIP Trunking pricing depends on many factors. By conducting thorough research on all the options available, you can find a suitable solution from a trusted provider at an affordable price.

At Stellar Communications, we offer a variety of phone systems for small and large businesses, including PBXs, VoIP/SIPs, and cloud-hosted phones. Contact us to speak to an expert and see how we can help you with all your SIP Trunking needs.

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