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SIP: Benefits for Business Communications

An Overview Before Learning About SIP Benefits

SIP benefits include simple implementation and significant cost savings in your business communications infrastructure. But, what is SIP anyway? SIP stands for Session Initiation Protocol. 

According to the portal TechTarget, “It is a signaling protocol used for initiating, maintaining, modifying and terminating real-time sessions that involve video, voice, messaging and other communications applications and services between two or more endpoints on IP networks. SIP was developed by four people and later approved by the Internet Engineering Task Force (IETF) in 1996—and standardized in 1999. SIP was designed to address the evolving needs of IP-based communications.”

Put in simpler words, SIP connects and disconnects communication sessions (such as calls) between two or more parties. You may often hear of this protocol on IP telephony. SIP uses the internet to deliver each session, using SIP trunks or SIP channels to transmit voice or video calls in businesses.

At this point, it is vital to disambiguate the term SIP from Voice Over Internet Protocol (VoIP). SIP calling actually uses VoIP to transport analog call data over an internet connection. These two protocols work together but are definitely not the same.

Now that you have a glimpse of the basics, let’s explore detailed SIP benefits for your business.

Related: Everything You Need to Know About SIP Protocol

SIP Benefits to Enhance Business Communications

As mentioned above, cloud-based SIP benefits for businesses come down to more straightforward, efficient and affordable communications platforms to keep employees, customers and other parties connected, no matter how people choose to work.

SIP market growth data reveals the advantages the corporate world is seeing of this technology over traditional telephony. Transparency Market Research gathered the following numbers:

  • The global SIP trunking services market could expand at a 13% annual rate during the 2020 to 2030 period.
  • The main factors for growth are the increasing demand for cloud-based SIP trunking services and replacing traditional ISDN (Integrated Services Digital Network).
  • The total SIP trunking market value was around US$ 10.6 Bn in 2020 and could reach US$ 35.5 Bn by 2030.
  • North America accounted for a total SIP trunking market value of US$ 3,955.9 Mn by the end of 2020.

These stats show why using SIP trunks is becoming increasingly relevant worldwide. The growth of VoIP as a primary telecommunications technology contributed to augmented connection capabilities and financial savings for many users. 

Then came the added SIP benefits to provide even more cost-effective solutions to replace the traditional but outdated advantages of PSTN (Public Switched Telephone Network).

Among other capabilities, SIP trunking allows subscribers to:

  • Utilize directory assistance services
  • Make and receive local and long-distance calls
  • Access landline-based and mobile numbers
  • Access the Internet and use email and texting
  • Make 911 emergency calls

Related: How SIP Trunking Reduces Communications Costs

Some providers in the industry will require you to make an upfront investment to deploy SIP. However, by choosing the best SIP partner, you can pay affordable monthly fees when acquiring cloud-based SIP trunking. 

Aside from its more straightforward design and implementation, ongoing use allows the utilization of multiple digital data streams with several quantifiable benefits. These include:

  1. Removing overlapping networks and their costs. Instead of operating and maintaining both data and telephone voice networks, one single IP-based network provides multiple digital streaming capabilities. This also eliminates scalability issues  and adds more physical infrastructure for additional users.
  2. Removing local IP-PSTN gateways. By getting rid of the IP-PSTN, you save on telephony costs and additional upgrade investments. Instead of purchasing hardware to move from one E1/T1 to two or upgrading to higher service levels with STM-1, you will simply need to increase your Internet bandwidth when acquiring a SIP trunking service. This eliminates hardware purchases, installation and maintenance costs altogether.
  3. Removing BRIs (Basic Rate Interfaces) and PRIs (Primary Rate Interfaces). Because you are eliminating IP-PSTN gateway with SIP trunks, they will only connect directly to the chosen ITSP (Internet Telephony Service Provider). It will no longer be necessary to add the expense of these subscription fees to your monthly budget. The service to replace them is less expensive, and you will not need to purchase lines in blocks of 24 or 32. 
  4. Savings on long-distance communications. Long-distance services are significantly less expensive with SIP trunking. In fact, all calls become local calls in terms of costs. When a company outsources its PSTN connection to a top SIP trunking provider, it achieves further savings because SIP calls use the Internet or the third party’s IP network to reach the provider’s termination point. Only then the call travels to a local PSTN. Even an international call could take place over the Internet at a similar cost of a call to a local number.
  5. Accessing ENUM (Telephone Number Mapping). Since SIP trunks use ENUM to find known SIP addresses, it will be able to complete more calls over the Internet with no PSTN involvement or added expense.
  6. Elimination of 800 numbers. You can include more local numbers quickly in each city your company locates instead of buying more expensive 800 numbers. 
  7. Enhancing Office Communications Server. In addition to using current services such as E911, you can easily access any new services offered by ITSPs without further investment. 

Finding the Best SIP Benefits Provider

With a growing SIP market, you can expect many players in the industry to claim they offer the best service. However, the premium ones offer the most features for your business, including:

  1. Powerful control panel: They will provide a friendly platform for you to easily manage all aspects of your account and complete procedures such as adding phone numbers, adding, changing or discontinuing services, and reviewing real-time call data. 
  2. Dialer Traffic Welcome: They will work with upstream carriers to receive all types of traffic based on your business’ needs. 
  3. Real-Time Call Data Records: A leading provider will help you understand your communications needs with accessible, downloadable data records.
  4. Widespread DID Coverage: DID provides easy-to-search databases to order local and international numbers almost instantly. 
  5. Bring Your Own Bandwidth: The best SIP partner will let you choose your own broadband Internet provider. 
  6. International Toll Fraud Protection: This feature offers real-time security actions to kill and alert international call fraud.
  7. Nomadic e911: Your supplier will let you apply any valid USPS address to any telephone number in the United States. When someone dials 911, it will display the specific address to the emergency services operator.
  8. Fault-Tolerant DID Routing: You can have inbound DID route to a primary and a secondary IP-PBX. 
  9. No Obligation Free Trial: Top-tier SIP trunking companies offer a free trial with included outbound calling minutes to anywhere in the U.S.

In the long run, SIP benefits provide a significant investment return on a relatively small monthly fee. Be sure to explore all of your supplier options so you can leverage the outstanding features and services you need for your business.

You can get started with in just a few minutes. Once our system verifies your email, it will automatically create a SIP trunk for you and deposit test credit to start making calls immediately. With dozens of exclusive communications features designed with the business owner in mind, will make it easy for you to start. Contact us today.

Free SIP Trunk in 60 Seconds

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