SIP Trunking: enhancing business communication

SIP Trunking: enhancing business communication

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PBX SIP trunking
SIP trunking, PBX


SIP trunking has been growing steadily over the last few years. In 2012 the amount of businesses using SIP trunking grew by 25.9%, and revenue generated by SIP trunking grew by 26.1%. In a 2015 study 58% of respondent businesses claimed they were using SIP trunking which is up from 38% from the previous study. Furthermore, revenue is projected to grow by an additional 22.5% from the years 2012-2019.

But what is SIP trunking? SIP trunking, also known as session initiative protocol, uses a voice over internet protocol (VoIP) to facilitate the connection of a private branch exchange (PBX). Essentially what this means is: the internet replaces a traditional telephone trunk, which is a line or link designed to handle many signals simultaneously, and that connects major switching centers or nodes in a communications system; this allows a business to communicate with fixed and mobile telephone subscribers worldwide. Strictly speaking, SIP helps VoIP providers to create, modify or terminate communications sessions that consist of one or more media streams. An example of this technology would be video distribution or instant messaging capabilities.

However in order for a business to access SIP trunking, it must have: a PBX that connects to all internal end users, an Internet telephony service provider (ITSP) and
a gateway that serves as the interface between the PBX and the ITSP. One of the most significant advantages of SIP trunking is its ability to combine data, voice and video in a single line, eliminating the need for separate physical media for each mode. The result is reduced overall cost and enhanced reliability for multimedia services. With SIP trunking, subscribers can: initiate and receive local calls, initiate and receive long distance calls, make emergency calls (911), access directory assistance, use fixed and mobile telephone sets, employ email and texting, and browse the internet; and all this can be done at a much cheaper price than using a traditional telephone trunk.

Nextiva, much like most established VoIP providers, allow business consumers to use their own SIP-enabled hardware or devices; telephone sets or soft phones. This affords businesses the flexibility to continue to utilize the infrastructure or mobile phones that they are comfortable with, without sacrificing the amount of voice over IP services available to them.

Many companies that have made the switch to SIP trunking have found that they are saving on the cost of telecommunications; specifically, they’re saving up to 50% of the cost of using traditional communications systems. Also, because of the expanding list of SIP capable devices available on the consumer market, businesses are able to provide employees with productivity improving devices, such as; the iPhone, the iPad, tablet pc’s and other handheld PDA devices – without fear of having to pay substantial telephony or per-minute billing fees often associated with such devices operating on a conventional telephony plan.

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I handle much of news coverage for tech stocks, and occasionally cover companies in different sectors. In the past, I've written for other financial sites and published independent investment research, primarily on tech companies. I have a B.A. in Economics from Columbia University. I'm based out of San Diego, but grew up in Southern New Jersey. I play basketball and tennis in my spare time, am a long-time (and long-suffering) fan of Philadelphia's sports teams, and alternate daily between using an iPad Air, a Galaxy Note 3, and one or two Windows PCs.

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