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SIP Trunking Long Distance

SIP Trunking vs. TDM Long Distance

SIP trunking allows enterprises and small businesses to eliminate a PSTN gateway (either T-1 or ISDN PRI) at their site and outsource that function to a carrier. It is typically a lower-cost alternative to Primary Rate Interfaces (PRIs) because SIP trunks can be purchased in single-trunk increments or multi-trunk increments over a dedicated public Internet circuit (as compared to 23 channel increments for a PRI). Your company will reduce costs using voice SIP trunks versus traditional TDM (time division multiplexed lines.

Here’s a hypothetical example of how SIP trunking works: A Los Angeles-based sales representative places a long distance call to a client based in New York City using a dialing prefix and the local-area phone number. The call either originates as an IP call or is converted to one before it leaves the office and then travels the majority of the way over the IP network of the service provider, then drops back down to the PSTN once it reaches its termination point. Since a sizable portion of the call traveled over the IP network at no additional cost rather than on the PSTN, the service provider can (and does) charge a fraction of what the traditional fee would be without the IP connection.

When compared to long distance costs over TDM T-1 connections, SIP trunking increases the number of calls over the same circuit. Using an dedicated Internet T-1 as an example, SIP trunking can deliver up to 40 simultaneous calls vs 24 for T-1 and 23 for ISDN PRI. With Dedicated LD T-1 circuits costing on average $200 and Internet T-1s costing $300 on average, the per call cost of the circuit for SIP trunking is $300/(40 calls) or $7.50 per call path vs. TDM at $200/(24 calls) or $8.33 per call path. With improvements in call compression, SIP trunking will demonstrate reduced costs per call path.

With these facts in mind, there is no question that SIP Trunking offers compelling advantages for businesses large and small.

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SIP Trunking Explained

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