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Media Center

To save money on VOIP, know where the savings are

SIP Trunking has emerged as the industry standard for carrier VoIP products, allowing customers to replace legacy voice trunks and services with VoIP on their data circuits.
   
But sometimes companies are surprised when they receive SIP Trunking pricing proposals and see a charge for each “concurrent call channel,” and even per-minute charges for long distance calls. What’s going on here? Isn’t VoIP supposed to be “free,” or at least relieved of per-minute metering?
 
For enterprises, the cost breakthrough in moving from traditional local and long distance telephone to all-IP voice has never really been about toll charge avoidance, especially since the per-minute price of “long distance” phone calls is now measured in pennies (and not many of them). Rather, SIP Trunking takes a hatchet to the Plain Old Telephone Service infrastructure that companies have had to maintain throughout their footprint. It allows customers to consolidate local and long distance voice trunks at one or a few central locations, reducing the number of phone trunks required and allowing voice traffic to ride on data trunks at low incremental costs. Local and long distance distinctions can be obliterated, putting an end to overpriced “local” and intrastate calls.

But as with all new technologies, there are many pitfalls and unexpected considerations.  One carrier’s SIP Trunking product can be very different from another’s, so designing a SIP Trunking procurement is an art.