SIP Trunking Benefits for the Service Provider

We have discussed some of the ways that SIP trunking is highly beneficial for the enterprises. However, the technology brings a host of benefits for the service provider as well. Providing SIP-based trunks to cus- tomers the service provider reaps a host of benefits,including the following:
1. Single Conduit for both Data and Voice
Today, most enterprises already subscribe to IP-based data backbones. By transporting voice traf-
fic across the same conduit, service providers can reduce the total cost of deploying and delivering
both services. In addition, the consolidated infra- structure offers the service provider centralized
management for all the services they provide.
2. Reduced Total Cost of Ownership
a. Reduced CapEx
Having two separate networks—one for voice and one for data—significantly increases the total cost
of ownership for service providers. In addition, if two networks have to be deployed instead of one,
expansion into new markets is not only costlier but operationally much more difficult. By allowing a sin-
gle network to transport voice and data traffic, SIP trunking reduces capital expenditure for
service deployment.
b. Reduced OpEx
Transporting both data and voice over a single IP network is not only cheaper, it is also easier to man-
age and maintain. In addition, both traffic types can be managed from a single system, cutting the
necessary network management resources in half.
c. Moves, Additions and Changes (MAC)
In today’s competitive space, the way MACs are handled is highly critical for controlling the bottom
line. Obviously revenues are affected. But the ease and seamlessness of MAC administration--along
with the cost of managing the services before and after a change--bear upon monthly operating
expenses. With legacy services, MACs often require physical reconfiguration that disrupts serv-
ices. By controlling such modifications in software, IP telephony greatly simplifies MACs. To modify the number of enterprise users the trunk supports (a complex procedure in a legacy system) becomes a
simple software reconfiguration to increase the bandwidth allocated to the trunk.
3. Offer Differentiated Services
Service providers are always looking for services which would generate additional revenue as and
differentiate them from their competitors. Offering SIP-based trunking allows Service providers to 
make expanded inroads into the enterprise market space by offering premium collaborative and con-
ferencing tools in their cloud-based services.


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