SIP Trunk Pricing Guide

Session Initiation Protocol (SIP) trunking is a system for making and receiving calls over the internet. Along with phone calls, you can exchange multimedia communication, including voice, video and text messaging. Using an SIP trunk can be more cost-effective and scalable for your business than a regular phone line. It also allows you to have local numbers in any region where your business wants to operate without needing physical premises there.

These and other advantages are motivating businesses worldwide to switch from traditional phone lines to SIP trunking. If your business is considering the switch, this guide will help you understand what SIP trunking should cost and how to get the best value for money.

Understanding SIP Trunk Pricing

SIP trunking service providers have various pricing models. Each has pros and cons, depending on your business's needs. Once you know which model suits you and what factors will affect your costs, you can look for the best deal.

SIP Trunk Pricing Models

Three of the most common SIP trunking pricing models are:

• Per channel: The number of SIP trunk channels you have tells you how many calls you can handle at once. Per channel pricing means you pay a fixed monthly rate for each channel, regardless of how much you use it. This gives you the flexibility to buy more channels as your business scales. But if you already know your business will need many lines open at once, you may get a better deal with a different model.
• Pay-as-you-go: This is also called "metered" pricing. You get access to as many channels as you need, up to the limit your provider can offer, and you pay based on how many minutes you use. If your typical call volume is low, this could be your most affordable option while being flexible enough for busy days. If you have consistently high usage, you'll get better value for money with a different model.
• Unlimited: Also called "unmetered" pricing, this model lets you pay a fixed rate no matter how many channels you use or how many minutes you use them for. Many providers have a maximum number of minutes per user, often around 3,000, after which they apply extra coverage charges. But in practice, most businesses will not reach this cap. If you have a consistently high call volume, this model could give you the best value for money.

Factors Affecting SIP Trunk Pricing

Along with your pricing model of choice, the following factors also impact how much you'll spend on your ideal SIP trunking solution:

• Number of channels: If you opt for a per-channel contract, you'll pay based on how many open lines you want to be able to access. This will depend on how many employees and clients you have.
• Call volume: Your call volume is one of the main factors impacting the best sip trunk pricing model for you and how much you'll spend. If you choose a pay-as-you-go option, your SIP trunk spending will increase or decrease with your monthly call volume. How many of these calls are local compared to long-distance or international could also change your bill.
• Features: Adding call encryption, recording, disaster recovery or other extra features could increase your costs. Consider which features you need and ensure you know which features your contract includes and how much any add-ons will cost.
• Contract length: Your provider may offer more favorable rates if you sign a longer-lasting contract. If you've found a reputable provider who can meet your needs, locking in this discount is worth considering.
• Provider: SIP trunk providers set their own rates, and some will offer you a better deal than others. This depends partly on whether they're Tier 1 providers with their own network infrastructure, Tier 2 providers who may have some infrastructure but also rely on Tier 1 providers to access other networks, or Tier 3 providers reselling Tier 1 and 2 network connectivity.

Hidden Costs in SIP Trunking

Before onboarding with an SIP trunk provider, review the contract carefully and ask questions to ensure you understand all the costs. On top of your regular usage fees, you may run into these extra expenses:

• Setup fees: You may need to pay a once-off rate to implement your SIP trunk system.
• Number porting fees: These are once-off charges for moving current phone numbers you want to retain to your SIP trunk.
• Early termination fees: Check your contract for an early termination clause and any penalty charges in case you decide to leave the contract early.
• International call rates: These vary substantially between providers, so check your international rates carefully, especially if you have a global client base.
• Taxes and regulatory fees: Ensure you understand your telecommunications tax obligations and other regulatory fees in your region. If you are reselling SIP trunk connectivity, your provider may be willing to bill your clients and handle the taxes.
• Support costs: Check what level of customer support your contract includes and what services may cost extra, especially if you are reselling SIP trunk connectivity.

5 Tips for Choosing the Right SIP Trunk Provider

When comparing SIP trunk providers to find the best value for money, remember to:

• Assess your needs: Analyze your call volume trends, check your budget and list your preferred features.
• Compare pricing: Shortlist providers offering a pricing model that suits you. Request quotes and compare their prices.
• Read reviews: See what other customers say about their experiences with the providers you're considering.
• Consider customer support: Before committing, check that the provider offers the customer support you need to minimize downtime.
• Think ahead: Choose a provider that offers flexible pricing plans to scale with your business.

How Much Could You Save?

To calculate the Return on Investment (ROI) of switching your business from traditional phone lines to SIP trunking:

• Take your current average monthly phone bill.
• Compare it to a quote from your prospective SIP trunk provider, including monthly fees, setup and other costs.
• Subtract the monthly SIP trunk costs from your monthly phone bill costs.
• Multiply the answer by 12 to get your annual savings.
• Divide your annual savings by the initial SIP trunking setup cost amount and multiply by 100 to get your ROI after one year. For example, say you have $300 monthly phone bill and get a $100 per month SIP trunking quote with $400 in initial setup fees. After 12 months, you would save $2,000 net, considering both monthly fees and setup costs. This would give you a one-year ROI of 500%. After two years, you would save $4,400 net for a 1,100% ROI.

Get a SIP Trunking Quote from Wiretap Telecom

With the right provider, switching to SIP trunking can land you significant cost savings. Wiretap Telecom combines the best SIP trunk pricing in the industry with reliable connectivity and 24/7 white-glove service. Our flexible, scalable pricing plans and personalized services will help you maximize your ROI. Get a free SIP trunking trial and request a quote today! Linked Sources: