One of the most common questions you’ll see when researching cloud communications is about SIP trunk pricing. How much do they cost? Do they come in batches? What kind of prices are reasonable?
These questions are pretty common, but they don’t come without complications. And at Voxbone, we obviously have our own pricing model that we think is the best (it is). But considering it’s such a common question, we thought we’d go through the basics of what you’re getting when you pay for SIP trunks and what that means for your business.
What is a SIP Trunk?
We’ve gone over what a SIP trunk is a couple of times on our blog, and what we found is that in the telecoms industry there’s no single, simple definition. Explaining it can get pretty complicated pretty quickly. But all you need to know is that a SIP trunk allows you to transfer your voice data in the same way you transfer your data over the internet.
When you actually go to buy a SIP trunk, you’ll notice they typically come with a certain amount of channels.
Think of a channel is the bandwidth needed to make one call on our network. The more you have, the more concurrent calls you can make at any one time.
Calls, Capacity, and Cost
If you’re used to purchasing in the telecoms space you´ll be comfortable with the concept of channels and understand why they tend to come in batches. In the days of PRI ISDN, these were usually bundles of around 20-30ish. That’s because aging copper lines can typically only support this many concurrent calls. Increasing capacity with ISDN lines is challenging because upgrading means installing more physical lines from your building to your supplier, which, obviously, costs more money.
Because SIP trunks work in the cloud and over the internet, there’s a lot more flexibility when it comes to increasing your capacity, with SIP trunk providers able to adjust the number of channels you need in almost real time.
Not only that but unlike the limitations from copper lines, your SIP trunk can have an unlimited number of channels. You have to pay more obviously, but scaling up is nowhere near as costly as with your old fashioned telecoms.
Because of that, if you’re planning some big expansions with your business – maybe you want to take your product international at some point, for example – using the POTS is going to become very costly in the long run. SIP trunks are a better alternative and will end up saving you a decent amount of cash.
In fact, according to research by Nemertes, nearly half (44.9%) of organizations that have adopted SIP trunking have seen a reduction in their overall PSTN access spend, by an average of 16.1%.
Buying a SIP trunk
Buying a SIP trunk is pretty simple, especially if you want to use it over the internet. You’ll need to make sure your PBX is SIP-enabled but other than that, you should be good to go within a few minutes.
And now you know what SIP trunks and channels are, the business-savvy among you will be able to work out how most people price them up. You pay once for the SIP trunk/s and its setup, then the number of channels you’re going to need to support your call traffic. On top of that, many providers can charge for individual number usage and for the number of minutes you’re on a call.
How much is a SIP trunk from Voxbone?
Like we said earlier, we think our pricing model is the best, and after 14 years of selling SIP trunks, you would certainly hope so. You can take a look at our pricing on our pricing page.
But essentially we have two models:
Pay-as-you-go for enterprises
You pay a monthly rental fee for your number and then by the minute for your calls.
Flat rates for resellers
Receiving calls is free but you pay a flat rate for the number of channels you need.