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The Growth of SIP Trunking

Posted by Pure IP News on 07-Nov-2014 15:05:00

shutterstock_114760207Session Initiation Protocol or ‘SIP’ trunking as we know it, accelerates and expands one of your company’s most important assets - its communication system. 

A few years back many company directors or C-level execs would have looked at you blankly if you brought up the topic of SIP trunking. Today, so many companies are using this service, it’s hard not to have come into contact with, or have some basic knowledge of the technology. SIP trunking allows companies to communicate over an existing broadband by effectively replacing fixed international local numbers, saving money on phone bills, while allowing for safer communication sessions - typically voice or voice over internet (VoIP). 

This very rapid reduction in costs, along with the ease of implementing SIP trunking services has seen a rapid growth of adoption over the past two years, with 38% of enterprises utilising a SIP trunking platform last year! That number is expected to rise dramatically to 60% by 2015[1] 

Conversely, the overall global market for business VoIP services in 2013 grew by only 11%. Telecoms research company, Infonetics, has reported that the service market of VoIP and unified communications (UC) is set to grow by $88 billion by 2018. This will continue to grow as ‘Generation Y’ enter the workforce and more employees use smartphones and tablets to carry out their work from almost anywhere. This is where having a SIP Trunk makes good sense to support flexible working by being able to route multiple calls from existing local numbers to anywhere in the world. Employees or end users won’t be able to tell the difference between using a teleconference line or switchboard, to a SIP trunking system – but the organisation will see a drastic reduction in teleconferencing costs. 

In today's economy, especially since the downturn of 2008, anything that reduces business cost and delivers value has to be seen as a major plus. One benefit associated with the adoption of SIP Trunking is the ability to consolidate the number of PSTN local access lines into one single number - other benefits include ease of use and cost reductions. Last year 58% of North American companies surveyed said they would be using some SIP trunks by 2015[2], with experts citing that savings of up to 50% can be had depending on the individual network[3].

Businesses starting out on the SIP Trunking path should recognise that capital expenditures are necessary, but these will be countered with ongoing savings in operational costs further down the line.

Educating the industry on the security provided by SIP Trunking has also been a major driving force behind its growth in popularity. With SIP, unauthorised access through the telephone line, such as hacking, can be monitored and spotted quickly. This in turn increases consumer confidence in your organisation. 

Scalability is key  

SIP channels can be scaled up as start-ups grow or conglomerates expand into global markets, ensuring that businesses can add new lines rapidly (without the delays we’re all familiar with when installing landlines) – and the great thing is that these changes can be made instantaneously, while driving flexibility and interoperability between networks. Other benefits include better visibility into call patterns, centralised management, dealing with less hardware and engaging fewer service providers, particularly for branch offices. 

All of the above clearly go some way to explaining why SIP Trunking continues to grow year-on-year and why it is expected to keep on doing so as more and more companies realise the value of SIP Trunking. 

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[1] http://blog.esi-estech.com/esi-blog/sip-trunking-adoption-is-on-the-rise

[2] http://www.networkworld.com/article/2164846/lan-wan/shrinking-idle-capacity--corporate-sip-trunks-could-equal-t-1-links-by-2015.html

[3] http://www.networkworld.com/article/2165052/uc-voip/sip-trunking--the-savings-are-there-but-the-transition-is-complex.html

Topics: SIP Trunking