SIP Trunk Pricing: Everything you need to know about cost & value to your business.

SIP Trunk is a communication platform that provides efficient communication services that are corresponding to what you get from an analog phone line. Switching to SIP is advantageous as it grants organizations several benefits including, lower cost, flexible bandwidth, better security, etc. In comparison to the traditional switched telephone network(PSTN) service, the voice-over-IP phone service via a SIP provider is inexpensive as well as offers the benefit of simpler billing. With SIP Trunking, the amount your organization expects to pay depends on the number of phone lines you use in a month.

How much does SIP Trunking cost?

SIP Trunking cost may vary depending upon various factors such as your vendor, equipment, implementation fees and monthly service fee that needs to be paid to the vendor. Usually, vendors put the monthly pricing between $20 and $70 per user excluding the upfront cost associated with SIP setup. The following pricing overview will help you to develop a better understanding of the full cost of switching to SIP including the price you pay for setup and the ongoing monthly service.

SIP Setup Fees

Many business-class SIP Trunking vendors charge a SIP setup fee. Some vendors offer free setup, however, they may charge a higher monthly rate. Generally, the setup fee includes the cost of the consultation, implementation and quality testing which ranges from around $50-$250. 

New Phone Lines

If an organization switches to SIP to get new phone lines and provide direct inward dial numbers for more users, it will be charged a fee of $10 to $25 per line.

Number Porting Fee

If you are moving away from your current vendor you can choose to retain your existing phone number by porting it to your new vendor. However, there may be a porting fee that you need to bring into considerations. Depending upon the size of your business your cost and porting time may vary. It can take from 2 days to 2 weeks and cost between $15 to $30 per phone number. Per the Federal Communication Commission guidelines, it is the legitimate right of your organization to have your contact information and retain it even after you switch to SIP Trunking.

Handsets and PBX Configuration

SIP Trunking users need an IP-compatible handset. The cost varies depending upon the brands and features of the handset. Generally, your organization is expected to pay between $50 and $1000 per handset. For PBX and PBX configuration your organization should expect to pay between $500-$100,000. To avoid these heavy PBX related costs your best bet is to opt for Hosted PBX solutions. This is not only cheaper than the inhouse PBX but also takes a load of PBX maintenance off your shoulders.

Monthly Service Fees

This is the ongoing monthly fee your organization needs to pay to the SIP Trunking provider. It generally ranges between $20-$75 per phone number.

Add-on Features

If an organization chooses optional add-on features for internal and external communication, then it can increase the monthly fee per user.

Choosing the Highest Value SIP Vendor

The cost of implementation and monthly services in your organization depends upon the type of equipment you buy to switch to SIP, the type of handsets and the add-on features. To ensure significant cost saving, your organization needs to select the right vendor who can fit within your budget while offering the quality and redundancy guarantee you need to communicate with your customers. A company needs to choose the highest value SIP vendor.

SIP trunking is an extremely popular option for any business communication system. Session Initiation Protocol, as it’s formally known, offers a way to setup communication sessions in real-time over an IP network.

Basically, SIP trunking allows you to make calls to anywhere in the world over the Internet. There’s expected to be 53 million SIP trunks by the year 2021.

We’re going to look at how SIP trunking pricing can save you money and how it stacks up in the world of communication.

How Much Does SIP Trunking Cost?

The classic telephone systems of yesteryear are about to be switched off in the next few years. Thankfully, this shouldn’t cause too much disruption because 70% of businesses already understand the importance of migrating to an efficient system of communication.

First of all, we already know that you can save up to 60% of the cost of a traditional phone system by making the switch to SIP trunking. At its lowest point, you’ll save 25%. For businesses communicating regularly, this could translate to thousands of dollars every year.

What are the Main Costs Involved?

There are lots of little service fees involved. And some companies may decide to charge monthly fees over initial setup fees. It depends entirely on the service provider you choose.

First, you need to factor in any additional services. Not all trunking services are the same. Some offer additional features like:

• Conference calling.
• International calling.
• Dedicated call center.

These all cost money. Thankfully, you usually don’t need to worry about these unless you happen to be running a larger business.

The next main cost is the cost of the IP-enabled handsets. Without these you can’t make calls. Depending on how advanced they are, they can cost hundreds of dollars per handset. Plus, there needs to be some training on how to use them, which is another cost.

How Does SIP Trunking Compare to Other Softwares?

Now you might be thinking that it doesn’t make sense to spend hundreds of dollars when you can use a program to make free international calls over the Internet. There’s no comparison, right?

In terms of cost, there’s no comparison. Many online programs are cheap or even have free options for making calls as long as the receiver is also using the program.

But for business use, this type of software is completely unsuitable. You don’t have any of the additional features of calling through SIP trunking and you have extremely limited call quality.

Poor call quality sends the wrong message and it can lead to serious problems when it comes to communication. Professionalism is everything in communication.

Last Word – Don’t Look for Cost Look for Value

Remember the impression you’re making when you communicate. Poor call quality, regular disconnections, and a lack of flexibility are what you’re going to get from cheaper programs.

But with SIP trunking you’re getting a high value communication system that you’re in control of. So, yes, the cost is higher, but you’re getting much more for your money.

Do you believe SIP trunking is right for your business?

In the long-term, your SIP trunk provider can help you save a lot of money. The market is worth $73 billion USD for a reason.

But choosing the right SIP trunk provider is critical. Here are the do’s and don’ts of choosing the best SIP trunk provider

DON’T Base Everything on Price

Did you know that 60% of buyers will ask about price on the first call? It’s often the most burning question, but with SIP trunking you want to look for value not just price.

Many of the low-cost SIP trunking providers have been known to cut corners. Perhaps reliability is down or there are hidden terms in the contract. You should never just opt for the cheapest option when it comes to SIP trunking pricing.

DO Compare Reliability

As a business, you always want to look professional. Standards are higher than ever before. Even the smallest of businesses must approach matters with the professionalism and image of a huge corporation. SIP trunking is one way to do that.

But if you experience constant downtime, you’re going to look foolish. Compare reliability levels between providers. You should never have an uptime rate that’s less than 99%.

DON’T Forget About Added Features

What makes SIP trunking so much more valuable than a program like Skype is that it comes with a range of added features. These include:

• Call forwarding.
• Caller ID.
• Call Tracking
• Call Flow Management
• CRM Integration

Make sure you take these into account. Each added feature brings something to your business, even if it’s just giving you a more professional image. Most SIP trunking providers market and sell these separately.

DO Look for Service Level Agreements

Some guides say that Service Level Agreements (SLAs) don’t matter. We disagree. They’re a sign that a provider is committed to offering reliability and an overall quality service. The presence of SLAs is an example of a company that cares about its customers.

DON’T Ignore the Value of Customer Support

Once you’re up and running the chances are you won’t spend much time speaking to your provider. But if something goes wrong you want to make sure that you have someone supporting you.

Businesses lose $75 billion per year because of poor customer service, so this should be one of your main considerations.

Look at reviews from other customers and see what they have to say about the level of customer service. They’ll be able to tell you how effective they really are.

However, keep in mind that customer service is as much about effectiveness as it is about availability.

Last Word – Take the Time to Study

 Don’t take this decision lightly. Choosing the right SIP Trunk Provider can be daunting but a decision you will not regret as it definitely will save you $$$ as compared to traditional PRI Phone systems. When working SIP Provider definitely look into contract period. You do not want to sign extended period contracts. Take the time to speak to different SIP trunking providers and their customers. Then you’ll be able to determine which provider to select.

Have you committed to switching SIP trunking yet?