SIP trunking is a protocol that allows your broadband Internet data connection to carry your voice telephone service. With SIP, you can use your existing, analog phones and PBX, but still get the benefits of VoIP service, like significantly reduced long-distance rates and advanced call monitoring. In most cases, SIP trunking will be significantly less expensive than maintaining a separate connection to the public phone network and paying a separate bill.
How much should you be paying for SIP Trunking services? Unfortunately, SIP trunk pricing varies enormously. Some providers charge very little at all while other providers may charge $50 per line, per month. How can the market support this enormous price discrepancy? The keyword to keep in mind is service.
Provide a Range of Services
A SIP provider has a relatively simple business model. All they are required to do is maintain a connection to the Publicly Switched Telephone Network and route your calls through this network when necessary. Some companies offer this service on the cheap, hoping to entice you into purchasing some of their other services. It may sound trite, but in some cases, the old adage “You get what you pay for” is true. If you pay on the cheap for your phone service, you should not expect to receive high-quality calling, extra services and personal support. Also, keep in mind that a cheap service may be canceled at any time leaving you scrambling to replace your phone service.
On the other hand, SIP trunk pricing may be based on the price of the traditional phone service that it is meant to replace. Depending on the market you live in, this price may have little or nothing to do with the actual cost of providing SIP services, but rather be based on what the market will accept.
Free is Probably the Wrong Option
Trusting your business to a free phone service provider is probably not a wise course of action. If your business depends on the phone, you need to choose a provider that has a good reputation for reliability and service. Meeting these expectations will require spending some money. Keep in mind that a high price does not necessarily indicate a high quality service. In most cases, you may want to avoid providers that price themselves at the top of the market unless you have unique needs that you cannot otherwise meet.
Depending on the options you choose and your market, you should expect to pay $20 to $40 per line per month for your SIP phone service. This price should get you a high quality, technically savvy provider that your business can rely on. For less money, you are unlikely to find a reliable provider who will be there for the long-term. For more money, you may get a provider that either is out of touch with or does not care about current market conditions.
SIP trunk pricing is highly volatile; the market for this service is still relatively young, and many providers will not stand the test of time. If you choose to use SIP services, do yourself a favor and choose a high-quality provider to partner with you.