How to Lower Your Trunking Cost
Most people have no idea what a Trunking Cost is. The only people that would know are the ones that offer it. But why do providers do it? It’s because they have a few reasons. They may charge more if you go out of network, or they may charge more if you use VoIP technology which is not supported by their normal phones.
Now, let’s talk about why a provider does it. The reason providers do it, is to maintain good customer service. When you go out of network, you can make a lot of calls but your phone bill will still go up. It’s like rent or buy, you pay rent for the carpeting in your house, but you don’t clean it very often. So when your carpets get dirty, you call a professional and they come in and take care of the dirt for a price.
The same thing happens with phone service, VoIP, and your internet connection. All the providers have to pay for bandwidth, even though the customer only uses a fraction of the total. And with VoIP, session initiation is crucial to keeping up with the competition. How many times per week do you call another business or have a personal conversation? Most likely, you don’t. So you shouldn’t have to pay for session initiation, which is actually the function of trunking.
Telephony companies are limited by the amount of bandwidth they can purchase. Since they need to lease or purchase a certain amount of bandwidth for each account, they need to be able to determine how much they are going to charge for a particular phone line, per month, or per Diem. This is where a Trunking Cost is derived from the provider. By deciding beforehand how much they are going to charge for a particular amount of bandwidth, the telephony company ensures itself that it can accommodate any increase in business or personal usage.
If the provider decides to charge a flat rate for its trunking service instead of charging on a specific rate for each individual client, the Trunking Cost will vary dramatically. Since the provider can’t promise anything with regards to usage, the actual usage will determine how much they are going to charge for their service. For instance, if you’re a small business with only 10 lines and you use all the phone calls, which in this case will be all the calls made and received, you might pay as much as $0.30 per minute for your unlimited calling plan. A business with several hundred lines may incur Trunking Cost’s that ranges from $.10 to more than $.20 per minute.
For small businesses with fewer than ten lines, they can get as much as one tenth of a penny per minute from their provider’s just for using their service. Of course, this is on a good connection and they can negotiate better deals if they have a good relationship with their providers. On the other hand, this kind of cost savings will not be offered for sip trunks, which are just like mobile phones in terms of service and price. SIP trunks are the special applications in which the internet is used in the form of packets.
There are three main reasons why companies charge more for their trunking service rather than for their normal phone lines: setup fee, access fee and connection cost. As for the setup fee, this is charged for hardware, software and other aspects of the phone system. Access fee refers to the number of phone lines and the fees for termination, connection maintenance, number porting and other aspects of the services.
The ongoing monthly service charges include the cost of voice mail, local and long distance calls, fax, etc. Access fees include connection maintenance, such as security maintenance, power maintenance, etc., and the total of all these charges, called the sip/monthly charge by businesses-class voip service providers. Business-class VoIP providers usually have monthly service fees, which do not include installation fees. This is why most small and medium enterprises (SMEs) have opted for hosted VoIP solutions. This saves them a lot of money.