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How Is SIP Trunking Helping Companies Cut Costs?

Session Initiated Protocol (SIP) trunking is a technology that has been steadily growing in usage within the business community. The biggest reason for this growth is because of how SIP trunks can reduce business telecom costs. Typically, transitioning to a different telecom technology is viewed as risky. However, if you’re considering making the move to SIP trunks in order to reduce your company’s telecom expenses, here are the reasons why there is actually very little cost risk with SIP trunks:

Lower Long Distance Rates

telecom cost savings The biggest reason to switch to SIP trunks is to save on your long distance toll charges.  Many subscription plans offer a low flat fee for all incoming, non-international long distance calls (with extra plan options that include outgoing and international calls).  On average, businesses see savings of 40 –50%from overall SIP related saving (and in some cases, up to 70%). Companies that are call center driven can see even greater savings.

Pay for What You Need

Unlike traditional telephony means like Primary or Basic Rate Interface subscriptions (PRI and BRI, respectively) which require that you purchase enough capacity for peak call times of the year (and continue paying the same even when call traffic slows), SIP trunks offer a much more flexible approach. With SIP trunks, you pay for what you use in a metered service fashion and can easily add more capacity when it is needed.

No PSTN (Public Switch Telephone Network) Charges for Intra-company Calling.

Installing an IP-PBX (Internet Protocol-Private Branch Exchange) at multiple company sites eliminates toll charges for calls between company branches.  When you consider the sheer volume of calls made daily by company employees to different branch offices around the world, it’s apparent that reducing the costs associated with these calls would result in significant savings.

Elimination of PSTN Gateways and ISDN (Integrated Services Digital Network) BRIs

Making the switch to SIP trunks means that businesses no longer need to purchase costly PSTN gateways or PRI and BRI subscriptions.  These subscriptions are very expensive and so scaling back or eliminating them altogether will result in instant monthly budget savings.  Also, without the need for gateway hardware it can be sold to recoup costs.

nec soft phone Using Softphones Instead of Traditional Phones
SIP trunks allow the option of providing a software-based phone on a user’s computer, which is less expensive than a traditional desk-based phone.  With only a headset and microphone the user has a full featured phone at a fraction of the cost.

SIP Bandwidth Not Used Can Go Towards Other Uses.

When SIP trunks aren’t in use for calls, the bandwidth is still available for other uses (such as data). By comparison, T1 and PRI lines sit idle when no calls are in progress. Therefore, SIP trunks represent a more efficient alternative.


There are many cost effective reasons to make the move to SIP trunks and we have only scratched the surface.

If you would like to know more about how SIP trunks can reduce your telecom expenses, contact us at info@ecitech.ca. ECI is your local expert on SIP trunking, as well as a channel partner of Rogers Business Solutions, a leading SIP trunk provider in the region.