Top 5 benefits of SIP trunking and why do you need it for your business?

Introduction

While VOIP is one of the most crucial communication technologies of all time, it may not do its best without the application of one essential component — SIP Trunks.

Also known as Session Initiation Protocol, SIP Trunking is the process for successfully establishing a Voice Over Internet Protocol Call (VOIP Call).

But the question still remains - What is SIP Trunking? How does it work? And why does it matter?

In this blog, we find out answers to all these questions and understand how you can choose the right SIP trunking service provider for your organization.

So, buckle up, and let’s start.

What is SIP trunking?

SIP trunking is a process that helps establish a VOIP call. However, that does not explain all about SIP. SIP is a signing protocol that initiates, maintains, and terminates real-time sessions, including voice, video, and messaging applications of internet telephony.

SIP trunking is a VOIP technology and streaming media service. Internet Telephony Service Providers (ITSPs) use it to deliver telephone services to customers having a SIP-enabled private branch network (PBX). 

The best thing about SIP trunking is that it eliminates the need for having mediators between the telecom providers and their customers. Hence, the charging fees remain low. We will discuss more of its benefits in the sections that follow. For now, let us look at how SIP trunking works.

How does SIP trunking work?

SIP acts as a bridge protocol that enables business phone systems & other digital devices to make calls through the internet by establishing a VOIP connection.

Earlier, the routing of voice calls used to happen through physical ISDN systems that worked on copper lines. SIP trunking technology changed this for good, and helped businesses optimise their communication processes.

Here’s the paraphernalia required for setting up a SIP trunking system:

• Internet connection
• SIP-enabled private branch exchange box, a.k.a. IP Box
• VOIP phones or adapters
• Network connections for phones

For older PBX systems, you may need a SIP-ISDN gateway. Modern technology may not always be compatible with older systems.

How To get started with a SIP trunking service

Here's a quick guide to help you get started with SIP trunking:

1. Choose a SIP trunking provider: Select a provider based on your business needs. Consider factors like cost, service reliability, and support.

2. Check network readiness: Ensure your internet connection can handle voice traffic. You need a stable network with enough bandwidth to support simultaneous calls.

3. Set up SIP-enabled PBX: If you already have a private branch exchange (PBX), ensure it’s compatible with SIP trunking. If not, you’ll need an IP PBX (Internet Protocol-based PBX) to manage calls over the Internet.

4. Configure the PBX:

• Obtain credentials from your SIP provider: SIP username, password, server IP address, and port number.
• Enter these details into your PBX system settings. The process varies by provider and PBX software, so follow the provided setup guide.

5. Set up IP phones: Configure your IP phones to connect with your PBX and SIP trunk. Enter the same credentials (server address, username, password) in the phone’s configuration menu. The exact steps will depend on your phone model.

Is SIP trunking the right choice for my company?

Deciding whether SIP trunking is right for your business depends on key factors. For instance, SIP trunking could be ideal if you are a small to medium-sized business with lower call volumes and want a cost-effective solution. It allows you to scale easily and reduces costs by transmitting calls over the Internet instead of traditional phone lines.

However, for larger businesses with high call volumes that need a dedicated and secure connection, consider alternatives like PRI (Primary Rate Interface). Basically, evaluate your business size, call volume, and flexibility needs to make the best choice.

Transitioning to SIP trunking

Making the switch to SIP trunking can modernise your communication system and reduce costs. However, a successful transition requires careful planning and coordination with your SIP provider. Here’s a detailed guide on how to transition to SIP trunking smoothly:

1. Assess your current setup

Start by evaluating your current PBX (Private Branch Exchange), the internal phone system. Ensure it is SIP-compatible. If your PBX is older and doesn’t support SIP, you may need a conversion plan to switch SIP into a traditional telephony system PRI (Primary Rate Interface).

2. Review network and data capacity

Before transitioning, assess your current network’s ability to handle the additional voice traffic. While voice data doesn’t require much bandwidth, other applications running on the same network could affect call quality. Consider setting bandwidth priorities to ensure calls don’t experience disruptions.

3. Configure your firewall

Security is key when switching to SIP trunking. Review your firewall configuration and ensure it’s properly set to handle SIP traffic. It’s a good idea to check with your SIP provider for recommended firewall settings.

4. Set up redundancy

For increased reliability, consider setting up a redundant IP connection. This way, if one connection fails, the other can pick up the traffic, ensuring minimal disruption to your calls. If your provider offers geo-redundant infrastructure (multiple locations for backup), ensure your system is configured to route traffic to different data centres when needed.

5. Gather data and port numbers

You’ll need to identify your current DID (Direct Inward Dialling) numbers and determine how many numbers need to be ported to the new system. This step involves working with your current provider to ensure that your new SIP provider has all the necessary information, including authorised signatures and existing number details.

6. Set up and test SIP trunks

Once your SIP provider has all the details, they’ll create the new SIP trunks (connections). It’s important to test the system before full deployment thoroughly. Load temporary DID numbers to test inbound and outbound calls and ensure that features like voicemail and call forwarding are working properly.

7. Go live

After completing all the necessary steps and confirming everything is functioning smoothly, it’s time to switch your communication to SIP trunking. Whether you roll out the change gradually or all at once, monitor the system closely during the initial phase to ensure stability and make any final adjustments.

What are the benefits of SIP trunking?

1. Efficient and cost effective

Cutting down on unnecessary costs is crucial for all businesses. However, holding more phone lines than needed may add unnecessarily to the cost. From international cost charges to maintenance requirements, you may have to spend on a number of things.

That is not the case when you deploy a SIP trunking system. As most SIP trunking systems are charged on per user basis, you will not be shelling out your hard-earned money for resources you don’t need or use.

Also, this makes your costs more predictable, so financial planning becomes easier and more precise. Based on your preferences and requirements, you can choose from the available metered and unmetered SIP trunk plans. Most organisations start seeing their billing costs go down in the first month itself.

2. Quick results

While several business investments may take years to produce ROI, SIP trunking setups don’t break the bank and may show results from the first month. From new international business to better availability of customer support teams, this can have a dramatic impact on your customer satisfaction. 

3. Freedom of flexible availability

As SIP trunking creates a virtual presence for businesses & individuals, they can choose when and how they want to be available. For example, a SIP-enabled system will help you synchronize all your different devices for voice calls, texts, video chats, etc., offering a seamless communication experience; wherever you are. SIP does this by providing the user with one single “address” for all their  devices and applications.

4. Scalability

With a SIP trunking system onboard, you will be able to scale your business’ communication forefronts without much hassle. This becomes possible, as, with SIP trunking, you can unify your communication channels and different offices into a single network. As a result, you can successfully carry on your business’ communication processes from any location.

5. Reliable

As you look for new technologies to assist your organisation’s business functions, reliability may always be a concern. Of course, downtime and intensive repairs can add high costs to a company’s expenses. SIP-enabled systems rule out a variety of such problems.

As these systems are virtual, the need for hardware installation and repairs is eliminated. Plus, as there’s little to no hardware or wiring involved, SIP systems are safe from extreme weather conditions and accidents. Also, if a failure occurs, you can still continue using phones. The calls reaching the faulty line will be routed over to other office lines or your mobile phone(s).

Choosing the right SIP trunking service provider: Things to remember

With a pool of SIP trunking service providers offering different SIP services an organisation may need, it’s critical to pick the best fit for your business. Let us take a look at the important factors to consider while choosing a SIP trunking service provider for your organisation.

1. Identify your needs

Depending on your company’s size and requirements, lay down a list of needs and expectations that you want fulfilled through a SIP trunking service.

2. Consider budget

The amount of money you are willing to pay for a qualified SIP service is another important factor. Even though SIP trunking services don’t cost a lot, it’s best to dedicate a budget and explore your options accordingly.

3. Company reputation

The company that you are planning to hire for your SIP trunking needs should not have a negative reputation among clients. If a service provider’s existing or ex-customers have negative reviews to give, they might as well have strong reasons to back their dissatisfaction. Before you hire a company, make sure to do some background research regarding its reputation and customer service track record.

4. Voice and video quality

Even if a company has a great reputation, don’t sign a deal without testing the voice and video quality that they offer. After all, you are hiring a communication technology company and great voice quality is the least to expect & demand.

5. Coverage

While global coverage may not matter today, it can be integral for your business’ success as you scale up. It’s best to find a provider that can facilitate global outbound calls and also provide various numbers across the globe for inbound calls, as and when required.

6. The DIY flexibility of BYOC

Different companies have distinct needs and requirements. So, the bundled approach with CPaaS might not always be a fitting choice. The Bring Your Own Carrier model brings greater control and flexibility to the table, allowing organizations to supply their own PSTN access solution by adding the preferred carrier choice. A good SIP trunking service provider should provide you such BYOC capability to build a custom, in-control communication strategy.

7. Security across network

With businesses constantly being targeted and threatened for the misuse of their confidential data, the need for network security arises. As you hire a SIP trunking service provider, make sure to be acquainted with their security specifications and how they keep their networks secure. While an additional layer of security may not add a lot to your annual bills, an exploited security loophole can wipe off hundreds and thousands of dollars.

Tata Communications’ SIP Connect and SIP Trunking solutions make the selection easier for you. Our systems offer a seamless experience with negligible downtime. We hold years of experience, delivering top-of-the-line communication solutions to global clients.

With Tata Communications’ Global SIP network, you can now enrich your business’ unified communication strategy as per your requirements. Our Global SIP Connect service empowers service providers and allows them to serve customers even in markets not yet covered by their networks. Automate & Integrate your business applications with Powerful SIP Trunking APIs to order numbers instantly.

SIP trunk price guide: Rate comparisons & cost reduction tips

SIP trunk pricing can fluctuate by country and provider. Here’s a snapshot of average international per-minute rates for key countries in Asia (as of May 2023):

• Cambodia: $0.0908 - $0.17
• China: $0.0250 - $0.06
• India: $0.0261 - $0.09
• Japan: $0.0201 - $0.0570
• Philippines: $0.0991 - $0.1990
• South Korea: $0.0142 - $0.0297

Rates can change depending on the provider, so it’s important to check for the best options regularly. Also, here are some strategies you can use to lower your communication costs and maximise savings:

• Regularly review your telephony invoices to ensure you get the discounts and credits you deserve.
• Ensure that service and usage charges are properly assigned across your contact centres and that no incorrect charges are applied.
• Review your SIP trunking plans to ensure they match your actual usage. You don’t want to overpay for features you don’t use.
• Consider consolidating your agreements into one contract if you work with several providers. This can streamline your billing and help you negotiate better rates.

Conclusion

Incorporating SIP trunking into your business offers multiple benefits, from cost savings to enhanced communication flexibility. It simplifies global connectivity, scales easily with your needs, and streamlines the management of voice services.

Moreover, choosing a solution like Tata Communications' Global SIP Connect provides your business with reliable, tailored SIP trunking services that ensure seamless communication, even in regions where traditional networks may not reach. With features like JAMVEE, a cloud-calling app for enterprises, you can elevate employee experience while optimising your global communication strategy. Contact our sales team now to know more!