Determining the Total Cost of Ownership for SIP Trunking

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Determining the Total Cost of Ownership for SIP Trunking

Posted by on November 20th, 2017 in Blog, SIP Trunking, Unified Communications

Switching to SIP trunking from a traditional private branch exchange (PBX) is an attractive move for many enterprises, largely because of the anticipated potential cost savings, though the technology offers a host of other benefits. These include:

  • Better security
  • Bandwidth allocation flexibility
  • Improved voice quality
  • Better service management

Organizations contemplating a move to SIP trunking need to complete a total cost of ownership analysis before making the switch. While estimates vary widely on potential savings, each enterprise also has unique requirements that affect the pricing.

If you’re looking at a pricing list for a SIP trunking vendor, you need to be sure that you’re planning your budget based on business-class rates. Then keep the following factors in mind:

SIP trunking set-up fees: Most business-class providers will charge you a fee that includes consultation, set-up, and testing. The fee generally ranges between $50 and $250, but enterprises with special needs may expect to pay more.

New phone lines: Some enterprises consider switching to SIP trunking when they are anticipating growth through an acquisition or another major event, so think through whether you need additional phone lines. These are generally installed for a nominal fee between $10 and $25 per line.

Number porting fees: According to Federal Communication Commission guidelines, you have the right to port over your existing phone numbers to the new system. This is generally the most time-consuming step of the transition to SIP trunking, and you can expect to pay around $15-30 for each number that is ported.

Handsets: This is where much of the variance in SIP trunking costs come in, because there is a wide variety of features and quality levels in handsets. You may want three-way calling or speed dial on your handsets, so expect to spend some time determining the right choice for your employees.

PBX configuration: Companies needing a Voice over Internet Protocol (VoIP) gateway to their existing PBX system will pay between $500-$2,000 for the equipment and set-up.

Monthly service fees: After installation is complete, you will generally pay a monthly service fee between $20 and $50.

Internet connectivity: The implementation of SIP trunking may result in an increased need for bandwidth for your enterprise, and you’ll need to include these fees in your total cost of ownership analysis.

SIP trunking vendors can vary widely in their pricing, and it’s important to use caution when choosing a low-cost provider. You may end up sacrificing quality for these lower costs.

Infinium Communications excels at innovative solutions for call centers, and we focus on finding creative technology to meet your business’s specific needs. Contact us today to start the process.