SIP stands for Session Initiation Protocol which allows you to use your landline phone for sending and receiving calls through the internet. We know that traditional landline has been in use for decades and is known for processing voice data only, but with a SIP line, your existing telephone cables become capable of carrying multimedia signals for voice communication, video conferencing, and instant messaging. For additional capacity, SIP Trunking is used which consists of hundreds of SIP lines for more calls and data traffic.
SIP Trunking enables business landlines to operate over an internet connection instead of a traditional telephone line. SIP Trunking can help you save 90% on international calls for your small business or startup. Unlike traditional telephone line deployment, you will not require a bunch of lines with SIP. Usually, one SIP Trunk is sufficient for a business, but it also depends on the size of your business and the amount of communication carried out in it on daily basis. The number of Trunks determines the work effectiveness in a company and the call flow rate. If you have a telecommunication company and you know that your organization handles a significant amount of call traffic then you need more Trunks because you will not want to sacrifice the communication quality. In SIP Trunking terms, one call occupies one SIP channel. In some companies, if there are 55 employees in a company, then only 5 of them will be on the call at a given time. But, in other companies, all 55 employees can be on a call simultaneously. So, you need to determine the call flow rate of your company before looking for a provider.
The SIP Trunk line cost is very low as compared to traditional PSTN service along with the benefit of simpler billing. The major cost of SIP Trunking depends on the vendor you choose, equipment cost, implementation fee, and the per month service fee you pay to your vendor. It has been calculated that an average firm saves up to 25-60 percent on their phone service billing by switching to SIP from a traditional landline system.