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How Do SIP Phones Save Companies Money?


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Session Initiation Protocol or SIP is a sophisticated control protocol intended to be used with IP-based communications in order to help businesses make calls via an existing Internet connection so that their costs of long distance calling are cut by a significant amount.

According to statistics, small to midsized businesses can gain up to 70% cost savings by using SIP phones only. Cost saving benefits of SIP phones can be divided into three highly effective and convincing points. Here are those points:

1. Reduced Telecom Charges

Toll-calling and long distance calling costs add up very quickly. This is particularly true for those businesses that are spread across different locations. Individualized billing, operational expenses, and infrastructure maintenance for each branch of the business need to be taken into account. And if some of the branch offices are situated in different states, or even countries, these costs skyrocket pretty quickly. Only by using an SIP Phone System businesses can enjoy the superior cost effective benefits because the calls are executed over an IP connection, hence significantly reducing telephony expenses.

2. Greater Control and Modification

Businesses of all sizes commit a large portion of their operational budget to telephone services, despite the fact that the telephone system sits idle most of the time waiting for peak periods. And if your business has multiple branch offices at different locations, you will have to pay for dedicated phone connections at each of your branches. You can have a better control over the allocation of your bandwidth by using SIP Trunks. What this means is that you will have the freedom to purchase a fixed amount of capacity and then have it distributed virtually from a centralized hub each time one of your offices requires it. Not only will it allow you to better manage your bandwidth, you will also be able to minimize your telephony system without having the need to dispatch a service call to your office location

3. True Network Consolidation

One of the primary purposes of SIP phones is to create a truly converged network, merging different services such as data and voice under a single roof. This eradicates the costs by rendering the previously necessary infrastructure (that was being used to deliver such services) obsolete. Not only does it reduce the amount of hardware required as well as the time and cost burden associated with network maintenance, it also streamlines the entire communications network. This true network consolidation is what every business needs to cut significant telephony costs and SIP is the best way to have it.

Final Word

In conclusion, no matter what your reasons may be to migrate to SIP, this technology is surely one of the most beneficial moves that you can make particularly when looking for ways to expand the lifetime of your existing technology and reduce costs. More and more businesses are adopting SIP on regular basis and this is no surprise considering the superior features and cost effective benefits it offers over analog and Rate Interface-based lines.

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