VoIP services are expanding, and they have SIP trunking to thank for that growth.
A SIP trunk is the use of SIP (Session Initiation Protocol (News - Alert)) to set up communications over the Internet between a customer location and an Internet telephony service provider (ITSP), which transfers the SIP calls to the PSTN. Thanks to SIP trunking, voice and data are no longer separate connections, all calls are considered local and PSTN gateways are no longer necessary.
We hear a lot about SIP trunking, but what are the advantages that come with SIP trunking? We know that SIP is simply a means of using Voice over IP (VoIP) over multiple trunks with the SIP protocol.
SIP trunking is a preferred technology thanks to its cost effectiveness and hosted services. SIP trunking technology is the perfect solution for customers who already own a phone system but want to reduce their monthly phone bill. SIP phones are used in a SIP environment and are pretty much the same thing as their VoIP phone counterparts; these are telephones that allow phone calls to be made using VoIP technology.
BroadConnect’s recent post highlights recent analysis from Eastern Management (News - Alert) Group, which says that 80 percent of large and small businesses say SIP is “very important.” VoIP revenue is expected to get a nice boost, specifically a CAGR of 7 percent, and it’s because of SIP trunking and unified communications.
“Residential VoIP services make up the majority of revenue, but growth is being fueled by business services as SIP trunking and cloud unified communications continue to expand and find broader adoption with enterprises of all sizes,” says Diane Myers, principal analyst for VoIP, UC and IMS at Infonetics Research (News - Alert).
With SIP Trunking, businesses purchase only the trunks needed based on the maximum number of concurrent calls the business requires. SIP Trunks are significantly less expensive than analog lines, further helping businesses reduce costs.
With all of these options, it makes sense for businesses to ditch the legacy telephony system and invest in a solid, stable and cost-effective business phone system that uses the most cutting edge technologies available.
Edited by Alisen Downey