What is SIP Trunking And How Can It Benefit Your Business?

Let’s face it- effective communication is crucial for any business regardless of kind or size. Moreover, they must also find ways to reduce the costs associated with running a phone system. This is where SIP Trunking comes in.

But what exactly is SIP Trunking, and how can it benefit your business? Let’s find out.

What is SIP trunking?

SIP, an acronym for Session Initiation Protocol, is an app layer protocol that allows businesses to run their phone system over an internet connection rather than over traditional phone lines. Trunking is the term used to describe the infrastructure of phone lines that connects to a telephone network and is shared by several users.

SIP trunking is frequently adopted by businesses to cut costs associated with phone service or to take advantage of cloud-exclusive capabilities. For instance, it is much simpler to monitor a digital phone system using analytics tools, which can track essential information about company phone conversations, such as the frequency of calls, their length, the audio quality of talks, and the number of calls that are missed. Because of this capability, the company receives valuable information regarding how it uses telephone networks in its day-to-day operations.

How can SIP trunking benefit your business?

  • Improved call quality

The audio quality of SIP trunk-based phone systems is superior to that of their analog counterparts. These systems ensure that the necessary bandwidth is available for every call, hence assisting in eliminating issues such as echoes, static, and dropped calls. A considerable trust signal can be provided by audio of high quality. Customers may have a more positive impression of a sales representative or customer care team member if their voice can be heard clearly. This may give the impression that the individual is more professional or reliable. Improving the sound quality of your team’s phone calls can do more than just make them simpler to understand; it can also give the impression that they are more trustworthy.

  • Reduced operating costs

If installed, SIP trunk system can drastically lower the costs associated with a company’s phone system. In most cases, the cost of a SIP trunk is significantly less than that of an analog phone line with equivalent capabilities. SIP trunking can potentially give significant cost savings in the form of reduced rates for international and domestic long-distance calls, as well as for toll-free numbers and additional monthly fees. These savings are typically rather substantial. According to estimations provided by Lumen Technologies, businesses that implement SIP trunking might save their annual communication costs by as much as 65%, or an average of 39 thousand dollars.

  • A high degree of scalability.

Virtual phone systems are typically simple to extend in their functionality. If your company need additional lines or toll-free numbers, you should get in touch with your SIP trunk supplier as soon as possible so that you can upgrade immediately. This might be a significant advantage for companies that experience rapid expansion or have fluctuating requirements for their phone systems. Your phone system can scale up or down depending on your requirements, which enables you to immediately assign phone numbers to newly hired staff members and reduce costs associated with the phone system when current lines are no longer required.