RingLeader Blog

SIP Trunk Pricing: Understanding Cost and How to Get the Most Value

November 6, 2019

Regardless of size, every business needs to be able to easily communicate with its customers and clients. That’s why many businesses are making the change to SIP trunking for their telecommunication needs. It is, however, important to understand the basics of SIP trunking before switching over completely; this will ensure that each business receives the best overall SIP trunk pricing for their individual needs.

What is SIP trunking?

SIP trunking, or Session Initiation Protocol trunking, is a telecommunication service that connects businesses directly to an Internet Telephony Service Provider over the internet. Rather than relying on the traditional Public Switch Telephone Network, SIP trunking transfers voice data between businesses and their clients over the internet, which results in a number of positive benefits. These benefits include lower SIP trunk pricing when communicating with customers across the globe, greater security and protection against data loss and data theft, and higher quality voice solutions.

Despite all of the benefits, though, it is important that businesses are aware of their specific needs before committing to a SIP trunking service.

Failure for a business to do so could result in the business investing in a SIP trunking service with needlessly high SIP trunk pricing, or that lacks certain functions that the business requires. Therefore, businesses want to not only make sure that they are not spending too much when considering SIP trunk pricing, but also that they are not spending too little.

Businesses should consider a number of factors when looking into SIP trunk services.

Firstly, it is important for businesses to consider their size and scope. If a business is large and has many important clients and customers, then that business should invest in a high-end business-class SIP service, even if the setup, service fees, and SIP trunk pricing are higher overall. By doing so, that business ensures that its high-end clients will experience the highest quality of telecommunication services, and that their communications will be secured and reliable at all times.

Failure to properly invest in SIP trunking services could, in some cases, result in client dissatisfaction and eventual economic loss to the company. Therefore, while one might assume the cheapest service would be the most cost-effective for a business to choose, businesses that underestimate their SIP trunking needs to hit a lower SIP trunking bracket risk paying the price in the end.

What about add-ons?

Another important factor for businesses to consider when investigating SIP trunk pricing is whether or not they will need a number of specific add-ons to their SIP service. While these add-ons can greatly increase the quality of the business’ telecommunication services, they also add a lot to the SIP trunk pricing. Features, such as the ability to hold large conference calls with various clients at the same time, will add to the overall cost of the SIP service. However, it is again important to consider each business’ needs. If the business investing in SIP trunk services often holds conference calls that are important, then losing those features just to save some money will not be worth it in the end. In the same vein, though, if a small business is unlikely to hold conference calls (or anything else that add-ons might facilitate), then paying extra money for those add-ons is simply unnecessary.

And don’t forget about bandwidth

Finally, businesses should consider how much bandwidth they need, especially since SIP trunking will not run smoothly if they lack the necessary internet bandwidth. The more clients and calls that the business will be making, the more bandwidth they will need. Therefore, when initially considering SIP trunk pricing, businesses should be aware not only of what they need from a SIP trunk service, but also of how much bandwidth they can afford to pay for.