SIP Trunking Cost Savings Updated Part II

On Wednesday, we addressed the first three bullets...

·         Per line cost (save 60-70%)

·         Usage cost for local inbound/outbound calling (typically no charge)

·         Domestic long distance calling (save 42-68%)

Today, I want to address the savings for the following:

·         International calling

·         Toll-free inbound calling

·         Moving from dedicated PRIs to converged T1s

I selected four countries that are often called as part of any international business. I also looked at AT&T's plans for occasional use (Basic) and frequent calling (Premium). Using the Broadvox International rates for comparison, the cost savings was greater than I imagined. And, our rates are not the lowest available from an ITSP or alternative carrier.

Obviously, the TDM per minute rate for international calling is not competitive with VoIP. A range of 300% savings to a whopping 10400% demonstrates the value for immediate transition to VoIP/SIP Trunking if the business has a moderate to heavy need to communicate internationally.

AT&T fared much better when comparing Toll-free calling rates (Verizon pricing is more difficult to obtain). Their toll-free rate is the same as whatever calling plan to which the business subscribed. Therefore, the savings that an ITSP can produce will be in the 42-68%. Moreover, AT&T charges $12 per month for each toll-free number. Broadvox charges $3 per month. This becomes significant if the business has a large number of toll-free numbers.

When comparing the transition from dedicated PRIs to converged T1s, multiple factors determine the amount, if any, cost savings. A VAR should enquire as to the how full/packed are the PRIs. Generally, they are underutilized and often by 50%. Therefore, a company is paying for capacity that it does not need. This practice continues with some ITSPs that insist on selling a converged T1, when the business bandwidth requirement is less. Knowing the percentage of voice to data traffic is useful but knowing the maximum bandwidth requirement is best for sizing capacity. Providing a fixed percentage of savings for moving from PRIs to converged T1s is not feasible. The actual savings can only be determined on a case-by-case basis.

Enough... Have a wonderful weekend! See you on Monday with another great new recipe!