SIP trunk pricing: Maximising value, minimising spend

Among the rapidly developing means of communication, SIP trunking has emerged as a critical service for companies looking for a progressive and, at the same time, non-costly communication platform. 

The global SIP trunking market was valued at US $13.44 billion in 2019 and is projected to reach US $30.22 billion by 2027, growing at a CAGR of 10.8% from 2020 to 2027. 

SIP trunking is a common service that every business may need, and its cost can vary significantly depending on many factors that will be described in this article. Here, we will seek to shed light on SIP trunk pricing while understanding the various models to uncover hidden costs. 

Introduction to SIP trunking

SIP trunk pricing as organisations strive to find the optimal boundary between profitability and cost. Transitioning to SIP trunking means a hard look at costs to achieve an optimal solution, as different cost models are associated with it. Research conducted in the industry shows that profitability generated from the implementation of SIP saves the average firm between 25-60 per cent over phone service in the impression of a traditional telecommunications vendor. 

Understanding SIP trunk pricing

It's time to shed light on such a genuinely compelling factor as SIP trunk cost; SIP trunks, virtual phone lines relying on the internet connection, may be more efficient to use than regular phone lines. SIP trunks can provide significant cost savings and the possibility of using effective communication channels for companies focused on growth and expansion.  In this capacity, while adopting modern communication, businesses may be sure of the optimised use and reduced communication cost by optimising their plans and adequately examining the feasibility of carrier consolidation.

When considering SIP trunk pricing, it's important to evaluate solutions that offer global reach and scalability. Tata Communications' Global SIP network stands out in this regard, providing businesses with unhindered global connectivity. This solution allows companies to enrich their unified communication strategy according to their specific requirements, potentially leading to more efficient cost management and improved communication capabilities across international markets.

Factors affecting SIP trunk pricing

SIP Pricing is also dynamic and based on metered or unmetered VoIP usage, charging per channel and block. Factors such as calls per month, costs relating to the extra options, and others lead to considerations on how to minimise expenses.

Pricing Models: Per-Channel, Per-Minute, and Unlimited

Let us see the various pricing models below in detail.

• Per-Channel Pricing: The charges depend on the number of channels or lines you buy. This option is most suitable for enterprises that require flexible resources and are willing to pay for unused server capacity.
• Per-Minute (Metered) Pricing: Controlled by the employees' call log, the pay is based on the actual minutes spent on calls. This number connectivity is ideal for business organisations with differing call traffic.
• Unlimited SIP Pricing: Monthly rental for each connecting line with free local and international calls, depending on the number of trunks selected. This option is most suitable for companies that expect to make a lot of calls for business as it comes with a more preset pricing model.

Cost-saving strategies for SIP trunking

Implementing an effective, low-cost SIP trunking strategy can cut expenses and improve communication solutions. It is important to discuss various cost reduction measures in SIP trunking further.

Optimise channel usage

• Continue to engage with your channel requirements on a more frequent basis. The related number of channels can be adjusted depending on their usage.
• Reduce the number of channels used in the care delivery process where spending money is unnecessary.

Consolidate carriers

• SIP trunk providers should be allocated in one location.
• Their combined efforts make billing easier and, in turn, result in better rates.

Choose the right plan

• If you make many calls, unlimited plans may be cheaper depending on the number of calls made.
• Different plans can benefit consumers in various ways. If usage varies frequently, metered plans cost less.

Evaluate additional features

• Features like call recording, added connectivity, and advanced routing all come with additional charges.
• Determine which of the descriptors are pertinent to your type of business.

Quality of Service (QoS)

• SIP traffic needs to be adequately addressed in your enterprise network.
• Scheduling SIP packets to prioritise how a call should be processed is important when it comes to call quality.

Hidden costs to watch out for

In the context of SIP trunking, the issue is with the so-called 'hidden costs', which any prospective end user should consider before making plans. Let's explore some factors that can impact the overall cost of SIP trunks. Let's explore some factors that can impact the overall cost of SIP trunks:

Geographic location

There may be differences in costs, which are associated with several options and connections accomplished to or from. International calls are usually more costly than domestic ones, so obtaining their records should pose no difficulties to investigators.

Indirect PBX costs

Beyond SIP trunking itself, consider other related costs:- Beyond SIP trunking itself, consider other associated costs:

• On-Prem servers or cloud hosting: The flexibility of the choice of hosting the PBX system influences the expenses.
• Systems engineers: Due to expensed costs, maintenance and support personnel have an industry impact.
• PBX software licensing: It should also be noted that licensing fees are usually charged for such services, and they multiply rapidly.
• Security auditing: The habit of periodic system audits was safe but might have some implications.

Conclusion

The cost implications of SIP trunks are influenced by factors such as call volume, channel capacity, and additional features. By carefully analysing these elements, businesses can develop strategies to reduce expenses while maintaining quality service. SIP trunking offers the flexibility to scale channels as needed and integrates seamlessly with other communication modes, enhancing overall business resilience.

Tata Communications' Global SIP network stands out as a solution that addresses these considerations. By offering global connectivity without border restrictions, it enables businesses to enhance their unified communications strategy while potentially reducing complexity and costs. The network's 99.99% reliability and end-to-end managed service can contribute to improved security and emergency handling, crucial factors in today's business environment. Don't settle for ordinary and contact us now!