XO Nails Down SIP Trunking Savings

How would you like to save over $88,000 a year for your business just by switching to SIP trunking service?

Not so fast, you with the pushcart. To save this kind of money, you have to have the size of operation that spends that kind of money. I’m getting the number from the new Enterprise SIP Savings Estimator offered by XO Communications, a major competitive voice and data carrier.



What kind of business saves the big bucks? In this case, one with 1,000 employees located in 10 locations and making half their phone calls within the company. This is not at all unusual for Fortune 500 corporations. In fact, I’ll bet there are many companies in your city that meet this criteria. Perhaps you even work at one. If you are in charge of information technology or telecommunications, this is something that can make you a corporate hero. With nearly all businesses turning over every rock to find cost reductions, SIP services are well worth investigating.

What’s special about SIP and how does it work the savings magic? SIP or Session Initiation Protocol is the switching protocol behind most VoIP implementations. In fact, when you hear the term SIP, you can bet the discussion involves VoIP telephony to some degree. The selling point of enterprise-level VoIP phone systems is that they are big money savers. But the question remains, “how?”

One big source of savings comes from the fact that we are in the digital age and companies large enough to have multiple business locations have those locations tied together with a WAN or Wide Area Network. Some do this with T1 lines and their own proprietary network topology. Others use a private cloud network, once Frame Relay and now MPLS, to create a mesh network that ties all locations together.

But what about telephone? The local PBX telephone system dominates with analog or ISDN PRI trunk lines for outgoing calls. Here’s where the savings come in. Right now you may need to use the public telephone network to make a call from a branch office to the main office or another branch. You pay for each of those calls. But, if you can press you data network to do double duty and transport voice as well as data, you can keep those internal phone calls on your own network and pay no toll charges at all. It’s almost free, since the data network has to be in place anyway.

SIP trunking is a technique that carries both voice and data on the same network. You don’t even need to connect your phone system to the public network. You can install a SIP trunk to a service provider that handles that at lower cost that you may be paying. The SIP trunking provider can also give you broadband Internet service over the same trunk without computer traffic interfering with voice traffic.

Oh, but you need to be a major corporation to save using SIP services, right? No, not at all. Most medium size companies and many small companies can also save money with SIP trunking in place of the separate phone lines and broadband services they buy now. How can you know if it makes sense for your operation? Easy. Get a competitive quote for SIP Trunking services and see just what the cost savings are. You may be surprised at what you’ve been missing out on.

Telecom Cost Savings Strategies

Every company is scouring the books for potential cost savings these days. How about your telecom expenses. Do you think there is any potential for savings there? I’ll bet there is.

First thing you need to do is collect those monthly bills and take a close look. For starters, just pick last month’s bill. What are all those line items that you are paying for? You need to know what each item is and why you have it.

In a larger organization, you can easily drown in the detail of every long distance phone call. I’d suggest just a quick scan to see if what sticks out like a sore thumb. Are a few users running up bills that are ten times everybody else’s? Do they have jobs where you’d expect that?

Especially be on the outlook for services that were ordered a long time ago but aren’t being used anymore. Do you have a special FAX line with no FAX machine attached? Are there a dozen phone lines coming into a building that has only a hand full of employees? How about dedicated point to point lines that link to locations you don’t even own or lease anymore? Cell phones that are sitting in drawers unused but still activated? All of these things are candidates to cancel immediately.

Highlight the rest of your telecom line services and how much you are paying for them. Generally data lines have a fixed cost per month. Telephone lines have both a fixed cost and a per minute cost. You want to know the bandwidth and cost of each data line and the per minute rate and number of minutes for each voice line. Why? So you can comparison shop, of course.

Oh, but isn’t that a painful and horribly time consuming process? Not anymore. Not since there’s a telecom brokerage service available that offers an array of competitive voice and data line and networking services. There may be several options available for each of your needs.

Best of all, there’s a free consulting service that can help you narrow the options and compare costs directly with what you have now on a line for line basis. That information you gathered to get a handle on your current telecom expenses is all you need to get started. Call the toll free number or submit an online inquiry to get the process started. You may be shocked by how much you are spending now that can be cost reduced in short order.