subject: Sip Trunking Market Shows No Sign Of Slowing Down; What Is Sip? [print this page] It has been predicted that by 2016 40% of all lines amongst businesses in the UK will be SIP, but for a solution so highly acclaimed as the future of business communications; not many of us have a clue what it is, what it does, or how it helps cut costs.
What is SIP trunking?
According to a recent report published on Comms Business, the SIP trunking market has reached 570,323 trunks, increasing revenue by 128%. But, what is SIP?
It stands for Session Initiated Protocol and is a Voice over Internet Protocol service. SIP is the name of the language that carries voice traffic over data connections to enable VoIP. In simple terms, they are the virtual version of your physical ISDN lines, bringing calls into your business but allowing for data convergence at the same time.
The critical functionality of SIP is outweighing even its substantial cost savings, unlike physical and restricted ISDN channels SIP trunks are instantly geographically independent and scalable for up to 100,000 users. SIP lines can also easily integrate into third party business applications such as software tools like Instant Messenger, CTI and video applications.
SIP trunks solutions are flexible, scalable and completely future proof, which explains their rise in popularity in such an uncertain economic climate. However, it's not just the features that are appealing to businesses, but also the beneficial cost savings.
The financial benefits of SIP Trunking
SIP solutions are the perfect and cheaper option for companies looking to install ISDN lines. ISDN lines have a maximum number of users and to increase users you must carry out disruptive work on site, they are inflexible and unmoveable. The number of ISDN channels deployed across the UK has decreased by more than 300,000 in the last year, paving way for a future dedicated to VoIP.
According to data from Webtorial, one in three enterprises that have deployed SIP trunking reported an average cost of reduction of one third. According to the Session Management for Dummies book, other cost benefits reported for SIP include:
"SIP trunking can reduce traditional telecoms bills by up to 75%
"Per line cost can be reduced by 60-80%
"Services costs for inbound and outbound calling can be reduce by up to 100%
"Plus more
SIP infrastructures could also reclaim 23% of the productivity lost on inefficient communications in large businesses, according to estimates by Webtorial. This is because a SIP environment can be used to take advantage of unified communications and data convergence to leverage full telecoms potential.
It is quickly becoming evident that SIP Trunking can warrant the change from traditional carrier solutions to futuristic IP based telecoms.
What type of businesses can benefit from SIP trunking?
Any business of any industry and size that has a need to make and take inbound and outbound calls will benefit from SIP trunking. However, only larger organisations are currently cottoning on to the valuable technology. Current market deployment rates are below:
"1-10 employees; 22% of the market
"11-50 employees; 21% of the market
"51-500 employees; 42% of the market
"500+ employees; 15% of employees
The impact of EFM and FTTC connection types (low cost high connectivity solutions) will open up the SME opportunity, plus a wider understanding of SIP needs to be recognised to further open up all markets.
How to find the right SIP trunking provider
In a world where not many businesses know enough about SIP trunking, finding the right SIP provider can be challenging. Simon Cutler of UK SIP trunking provider, Elite Telecom, gives the following advice to organisations:
"The only way you can really find a reputable SIP Trunking provider is by getting in contact with numerous providers and discussing your needs. If they ask questions and probe into your organisational needs and telecoms set up you know you"re on the right path to both reaching a valuable solution.
"Some providers will find it difficult to make bandwidth calculations; too little capacity will block calls and too much capacity means wasted money. If it doesn"t sound right, trust your judgement, most of us will be able to tell when we"re being taken for a ride.
"Only SIP trunking providers that work closely with you and that ensure you understand the solution fully before getting you to sign anything is a worthy contender. With Elite Telecom, we have the best cross section of the market to be able to find the perfect, scalable SIP solution for any business."
For more information on SIP solutions don"t hesitate to contact Nick Mannion or Simon Cutler at Elite Telecom
