The Economics of SIP Calling

There are many reasons why businesses choose SIP trunking as an alternative to traditional telephone lines. Although SIP offers many attractive features, the lower cost is a main driver, so it makes sense to ask if SIP calls are actually cheaper than other phone calls.

SIP Calls

Let’s start by describing what makes a SIP call different from other phone calls.  As far as the caller and recipient are concerned, there should be no difference.  SIP calls sound like regular telephone calls and are dialed on an IP enabled telephone in the usual way.  If a SIP vendor with a reliable infrastructure has been selected and an adequate high-speed Internet connection is available, call quality will be the same as the traditional approach.  

The difference is in the method used to connect the caller and recipient.  Rather than traversing traditional telephone lines, SIP calls are delivered, along with other unified communications services, over the Internet.  SIP utilizes both Voice over Internet Protocol (VoIP) and Session Initiation Protocol (SIP).  

Price of SIP Calls

Traditional telephone lines, or PRIs (Primary Rate Interface) are sold in increments of 23 channels.  Each channel represents one concurrent call.  This means that customers are often required to pay for more channels than they need. SIP calling can be offered in increments as low as one channel, making it possible for companies to buy exactly the number of concurrent SIP calls that are necessary for their business and reducing the overall amount of spend.

Another way that SIP calling can help reduce cost is the flexibility offered by the best SIP providers.  Traditional telecommunications carriers often require long term contracts that force companies to guess their needs into the future.  On the other hand, some SIP trunking providers offer customers the flexibility to add or cancel channels at any time as their needs change.  This means that the power to match spending on SIP calls to the exact needs of the business is in the hands of the customer.

Long Distance SIP Calls

SIP calling typically includes long distance charges to the 48 contiguous US states and can be accompanied by attractive international long distance rates.  In addition to the lower cost of SIP calling, businesses appreciate the predictable monthly expense that the approach affords.

The Bottom Line

For the vast majority of customers, SIP calls are less expensive than calls made over traditional landlines. The reduced cost is accompanied by increased control and predictability, making SIP calling attractive to businesses of all types and sizes.