Unpacking the Benefits of SIP Trunk Services for Modern Businesses

When it comes to communications, businesses have multiple channels to manage. They can use the internet for voice calls (VoIP) or traditional analog lines. They may use internal messaging applications and deploy a separate solution for video conferencing. Operating  multiple channels seamlessly can be challenging. 

Today’s service providers can help customers simplify their digital communications by offering SIP trunk services. SIP, or session initiation protocol, can replace existing phone lines with digital channels that can transmit multimedia. With a fully featured solution, service providers can meet the growing demand for text, voice, data, and video in a unified solution.

What is a SIP Trunk Service?

Traditional phone systems have a centralized system that receives calls from an external network (the phone company). The organization’s internal system routes the call to the appropriate extension over physical wires. Changes required multiple vendors. 

SIP trunk services, on the other hand, use digital technology to offer a similar service that establishes a virtual version of an analog system. 

What is SIP?

SIP is a text-based, application-level protocol that is independent of the transport layer. It establishes channels and transmits information in packets. It manages the connection and terminates it as the protocol requires. Each channel allows inbound and outbound messaging to occur simultaneously.

What is SIP Trunking?

When multiple channels are bundled, the resulting connectivity is referred to as a SIP trunk. Trunks allow businesses to connect internal phone systems to external networks. With virtual channels, companies can add and subtract connections as needed without lengthy delays.

How Does Sip Trunking Work?

SIP is a peer-to-peer communications protocol that resides above the transport layer, making it network agnostic. For an incoming call, the technology opens a channel to the designated recipient. 

Related: SIP Trunking Explained: What You Need to Know Now

The data, whether video or voice, is sent over the open channel in packets. SIP negotiates the send-and-receive session until the communication ends. It will then terminate the connection. Outbound traffic performs the sequence in reverse.

Why Offer A SIP Trunking Service?

Organizations are always looking for better solutions at a lower cost. Maintaining multiple networks is costly and resource-intensive. Someone has to oversee operations, maintain hardware and software, and interface with various providers. 

Offering SIP trunk services creates an added revenue stream and delivers a cost-effective solution to customers. While reducing costs may be the impetus, end users will appreciate the many benefits that SIP trunk services can provide. 

Reliability

Video conferencing is an essential technology for most companies. With remote work increasing, video calls are replacing many in-person conversations. Without reliable connectivity, video calls can pixelate and voice quality can degrade. 

SIP platforms can provide automatic rerouting of failed transmission to ensure reliable communications. Using load-balancing technology, SIP systems can adjust channel usage in real-time to ensure that no channel becomes overloaded. However, should a problem occur, the best SIP trunking services should offer built-in redundancy and real-time replication. 

Scalability

SIP trunk services can adjust to business needs. For companies with periods of high-volume calls, SIP trunking providers can create new channels through a user interface. When the volumes return to previous levels, the channels can be removed. This capability enables the end user to only pay for the added channels when needed, unlike traditional phone lines where line charges are incurred regardless of usage.

Although SIP platforms allow service providers to adjust channels within a SIP trunk, they still rely on the underlying infrastructure to meet bandwidth requirements. Broadband connections can be used to carry most traffic; however, fiber optic cabling may be required if high bandwidth is required. Each media type (voice, video, text) uses different bandwidths. When considering SIP platforms, service providers should ensure that the platform has sufficient infrastructure to support their end users.

Portability

It’s exciting when business growth requires a bigger building or a satellite office. However, the phone number that’s been used for decades may not be portable. With physical phone lines, site changes require companies to turn off services in old locations and turn on services at new ones. 

The new location may not be in the same service area as the old phone number. If the phone number has to change, there’s the cost of updating all materials with the new phone number and informing existing clients of the changes.

SIP doesn’t restrict phone numbers by geographic location. End users can keep their phone numbers no matter where they relocate. Alternatively, organizations can have numbers with different area codes to appear local to their market.

Productivity

SIP trunking makes digital telecommunication features possible. Fax services, business messaging, call recording, and call rerouting are all possible with the right SIP trunk platform, and these features enhance worker efficiency. For example, rerouting calls can help reduce the inevitable phone tag that slows productivity.

Related: 10 Benefits to Becoming a SIP Trunking Provider

Combining SIP and VoIP for a unified communications platform enables remote workers to remain connected, and provides tools that allow effective collaboration regardless of location. With a single system, new hires can quickly learn the basics for faster onboarding.

Cost Savings

The scalability and portability of SIP trunking highlight its cost savings. Businesses do not have to pay for phone lines that are only used part of the year. They have more control over their telecommunications, allowing them to retain consistency in their customer-facing materials. They can also realize the following cost savings:

• Charges are per channel rather than per line for local, long-distance, and international calls
• Less hardware and software to maintain, service, or replace
• Maximized internet connections for voice over internet protocol (VoIP)
• Consolidated communication under a SIP platform rather than contracting with multiple vendors

In today’s business environment, customers want less stress and lower costs. With SIP trunking, service providers can deliver a unified communications solution that does both. 

Why Provide a SIP Trunk Service?

As more business operations become digital, the telecommunications industry faces significant challenges in addressing 5G and edge computing demands. Deloitte predicts that many providers will form partnerships to remain competitive.  

Customers may find existing bundles disappearing or becoming more costly as telecom companies change their business models to counter shrinking profit margins, so offering a SIP trunking service can insulate customers from possible disruptions.  Providing customers with a solution that protects them from rising costs strengthens any business relationship. 

While SIP trunking has clear benefits for the end user, service providers need to partner with the right SIP platform to ensure reliable connectivity without adding to administrative overhead. SIP trunking resellers should look for solutions like SIPTrunk that have built-in redundancy and a centralized dashboard for managing all services. 

If you’re interested in becoming a SIP trunk reseller, contact us to learn how to get started. You’ll discover a simple and convenient solution to help grow your reselling business.