SIP stands for Session Initiation Protocol and was first developed in 1996. In the last few years it has reached a level of sophistication and a price point where it's a viable solution.
First thing to know is that SIP trunking runs on an IP circuit; T1, DSL or Cable Modem. A T1 is usually the best. Some of the faster DSL's and Cable Modems offer superior bandwidth but are prone to drops in speed and produce more error messages than a T1. This can cause degradation of voice quality causing jitter and latency.
Voice is converted to data and sent along the same circuit as the other data packets. Data gets the entire bandwidth when no voice is present. Your internet circuit and your circuit providing SIP trunking can be one and the same. Quality of Service (QoS) is managed by the service provider, with voice taking priority over data.
Since SIP Trunking works over IP networks, it potentially eliminates the cost for separate dial tone services like ISDN PRI or multiple analog lines. It also allows businesses to expand their IP reach to remote locations and mobile users.
Remember, SIP is a protocol not a list of applications. These vary greatly between SIP providers.
Three factors weigh heavily in the decision to implement SIP. They are Features, Potential Cost Savings and Functionality. Let's address each separately.
Features are fine but what's really important is the application and how it benefits your organizations' bottom line. Some of the primary features of SIP Trunking are:
• The service is location agnostic. You can have telephone numbers from anywhere in the world appearing on your phone system. This is beneficial if you wish to project a presence in a local area although your company is located elsewhere.
• Direct in Dial (DID) numbers are readily available. Any or all of your telephone extensions can have a unique 10 digit number. That number could be local or from any area code in the country.
• Find Me Follow Me is a feature allowing your DID number to ring your office phone, cell phone and any other number of phones simultaneously. A more practical application would be to ring the office phone and then ring other assigned numbers if the call is not answered.
Potential Cost Savings are realized the following ways.
• Average monthly savings can range from 30-60% less than comparable service. The keyword here is comparable. If you replace 8 analog loop start (also known as P.O.T.S.) lines with SIP trunks you will see the savings. If you decide to eliminate your 8 P.O.T.S. lines and give each of your 40 extensions individual SIP trunks, you most likely will see a cost increase. Individual SIP trunks may make sense if you have a small number of extensions. If not, the cost savings may never be realized.
• Long distance is typically less than $0.025 per minute
• As a VoIP service, SIP is not yet subjected to the same telephone related taxes that traditional dial tone and long distance services are. This may change in the future.
• If your company uses the same SIP provider, calls between the locations are usually at no charge
Functionality can be a blessing and a curse. The blessing is that SIP is cloud based. Changes to most features, primarily, call forwarding functionality can be accomplished by the user over a web browser. Most users have their DID number ring to their cell phone in the event of an internet failure. Additionally as a cloud based service, there is no interaction with the local telephone company. Issues concerning bad wire pairs from the telephone company which result in static, cross talk and dropped calls do not exist. SIP trunks are delivered by your internet service provider.
The curse is that SIP is internet dependent. Call jitter and latency affects call quality as well as reliability. Overall quality, while usually acceptable, is not yet on par with land lines.
Implementing new technology is neither easy nor clear cut. SIP trunking is heralded by many as the future of carrier services, at least until a new technology arrives. In any event, it is a technology that should be seriously assessed when considering a modernization of your telecommunication services.
I've been in telecommunications prior to the break up of the Bell System; AT&T before they were just a wireless provider. I've seen analog, digital, simultaneous voice and data, 2B+D, SST and enough acronyms to bore you to death. Those acronyms never stop coming and today their relevancy is more fleeting than ever.
My goal is to educate and entertain. My philosophy is that technology is a tool to add to the bottom line, increase customer retention and implement profitable processes. Buzz words are the tool of those who have no interest in your business but want your money to get the "latest and greatest", "cutting edge" etc.
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