How SIP Trunking Saves Your Company Money

Understanding all the various components of network systems, connections, proxies, and other services that make up a Unified Communications (UC) system for your business is no small task. You’re aware of VoIP systems, VPNs, how to make the most of Ethernet hubs, hosted network, the whole nine yards. But now, you’re looking into Session Initiation Protocol (SIP) and SIP Trunking, as a final connector to bring all the components together. Why? Well, because there is no stopping you on your quest for knowledge and network understanding. That’s why.

Introducing SIP

SIP is the technology used for creating a voice communication session on a data network. Using their protocols, SIP is responsible for the signaling and session management of a call, the connection, support, and termination. It is not only limited to telephone connections; it is additionally a way to combine voice, data and internet over a simple IP connection and eliminate the need to buy separate circuits.

In traditional telephony usages, there are two distinct, different phases of a voice call. The first part is the call setup, the part which gets the two telephones talking. After that connection is established, the phones begin the data transfer phase. This is a separate process which requires a different set of protocols to direct the movement of voice packets between the two phones. In relation to VoIP networks, SIP falls into the setup phase and operates at the application layer.

Specific features of SIP include:

  • User location and registration – SIP detects the location of telephones, their address, name mapping and then establishes a connection between the two points.
  • Availability- SIP determines if the end users of the connection will answer the call. If a call cannot be established because the target user is unavailable, it is SIP that makes the distinction why the user was unable to connect, either because they were already engaged or if they just did not connect within a certain number of rings. This is how a person is either directed to voice message or can get the busy signal
  • Capabilities –SIP is used to determine if and how media, voice, and text data can be coded and transmitted across their connection. Data is transferred only using the media capabilities that apply to both endpoints to ensure data can be read on all sides
  • Management- SIP is used to transfer calls, end calls, and add on additional endpoints to a connection, in the case of a three-way conference call.

A SIP trunk then takes the place of the need of physical wires that connect your phone or device to a Public Switched Telephone Network (PSTN) and instead acts as a virtual phone line, between your network system and the provider. This enables your T1, Cable Modem, DSL, Ethernet, or whichever type of connection your company has, which accounts for the transfer of data, voice, and the internet, onto one line.


Cost savings is the most immediate benefit of SIP Trunking. If your company is paying for multiple phone lines, IT maintenance fees, and long distance charges, these can all be reduced by combining your services with by SIP Trunking. This installation rids the need for a physical connection to a phone company, including the wiring, circuit boxes, and hardware. SIP Trunking takes the place of multiple phone lines and combines them into a single point of entry at favorable rates.

Companies are then charged for their service either by the number of lines used, or for minutes used. This allows companies to eradicate unused portions of traditional plans that they were previously paying for. Also, SIP Trunking can support Direct Inward Dialing and caller ID functions.

What to consider

After deciding to implement SIP trunks, a quick overview of your company, either done internally or with a chosen provider, can give you a good idea of how many SIP trunks your business will need. This will let you better gauge the cost, and the savings that will be realized.

Depending on the size of your company, how many calls are made concurrently during the peak hours of business, you can determine how many channels are needed.

Generally, companies will need one SIP trunk per each 2-3 users. Keep in mind that price plans from providers often offer you rates per SIP Trunk, or per minute used. Discuss which rate plan is the better option for your company, according to your usage.

The second consideration to account for is your internet connection. Since SIP allows for the transmission of data packets over your IP network, it only makes sense that your network connection can support the level of communication your business requires. Make sure that you have enough bandwidth to support your communications at the quality level you desire. If for any reason you do not have enough, it should be an easy fix to purchase more from your network provider.

Who to contact

To get started, it is always advisable to speak with a vendor company for more information. XO Communications is an industry leader in Unified Commutations for bossiness across the nation. With connections hubs all over the country, they very well should be able to assist in determining how to best structure UC to your business advantage.

Get The Best for Your Business with VoIP

Cutting down on cost and simplifying communications is one of the primary goals of any business. It should be one of the first. Once you have all lines of communications up, running smoothly, and best of all, at a good cost, companies can proceed at full speed.

Unified Communications is one of those factors that is so important, but often taken for granted. Like never realizing how much easier having a car or public transport makes your life, until it is in the shop or on strike.

One of the first places to start looking is in the options of VoIP services.

VoIP Explained

VoIP stands for Voice Over Internet Protocol. Wikipedia defines it as an acronym for Voice Over Internet Protocol, or in more common terms phone service over the Internet. If you have a reasonable quality Internet connection, you can get phone service delivered through your Internet connection instead of from your local phone company. (

In more relatable terms, VoIPs offer the best rates, reliability, and security in the transmission of voice and data communications for business. Originally used mostly for phone calls, the new age of digital information sees an increase in the desire for faxes, emails, web conferences and internet applications to be included in provider services. Companies are catching on quick; it is the becoming the standard of telephony and data operations.

In fact, recent research finds that more than one-third of all businesses are now using a VoIP phone system, with the vast majority of those being businesses with fewer than 50 employees.

How is this helping me?

You might be asking why. What are the benefits? With so many products and services available to us now, there should always be a healthy bit of skepticism. No one wants to give their money away without understanding the benefits.

A quick overview of specific services VoIPs include will help make the upsides clearer. Voicemail, virtual receptionists, call forwarding, call recording, on-hold music, voicemail-to-email, conference calling, video conferring, instant messaging, call screening, missed alerts and call logs are among the many features offered by most VoIP providers.

Boost Productivity

1. People can work from remote locations- More and more companies are becoming globalized, and long gone is the concept of having just one office in one location. With VoIPs, you are allowing your company to employ the best candidates for your business, without restrictions to local commuting areas. Employees can work when they need, where they need, and studies have shown that makes all the difference in their productivity levels. Good for them and good for the company.

2. Save time on playing phone tag. For some reason, many people just do not like checking their voicemails. It is almost the same as hearing a person speak live but less efficient. With many providers, translations from voicemail to emails is a great feature which enables those VM adverse to be able to respond via email or a phone call straight away. With 33.8% of Americans checking their emails throughout the day, this is a significant benefit.

3. Better customer service – Business is all about making customers happy. Happy customers return and are the best brand and product ambassadors a company can have. With the features above, it will be easier to keep in contact with customers to inform them of any changes, updates, and save more complete profiles for specific clients, so there is no wasted time verifying their information for the umpteenth time. Fast, efficient customer service has always been my favorite. I doubt I am alone in that opinion.

These are in addition to the reduced cost in service plans and personnel to maintain the systems. Businesses are further able to reduce IT professionals by opting for hosted VoIP networks, making the maintenance, update, security, and functionality the provider’s responsibility.

What to consider in a provider company

As with anything else, when someone is successful and has a new idea people can make money on, well, they’re going to try. Some of the leading providers are taking notice as can be seen in a communications blog.

Over the last decade and more, small VoIP providers have popped up all over the place, some have even made waves by launching fairly disruptive offers in the marketplace. Small integrators and managed service providers figure they can start a VoIP business on a budget in their garage and increase their revenues and customer bases.

The article goes on to compare these small pop-ups, with outdated musicians, won’t bring much more than a laugh and people questioning your judgment abilities. Stick with the more nerdy but much more reliable with well-rounded players.

For a quick round up to cement what VoIP is and benefits, check out this short Youtube video below.

Get started

You might be in charge of your communications, and know all about the nuances of VoIPS, or maybe you’re in a different department but still wanting to have a general idea what is occurring around you. As one of the leading business VoIP providers rank by Infonetics, XO Communications is a good place to get an overview of what this technology is and how it might help your business. They’ve been in the business since the beginning and have bragging rights of being one of the first providers to surpass one million Business VoIP end users.