SIP Trunk is a communication platform that provides efficient communication services that are corresponding to what you get from an analog phone line. Switching to SIP is advantageous as it grants organizations several benefits including, lower cost, flexible bandwidth, better security, etc. In comparison to the traditional switched telephone network(PSTN) service, the voice-over-IP phone service via a SIP provider is inexpensive as well as offers the benefit of simpler billing. With SIP Trunking, the amount your organization expects to pay depends on the number of phone lines you use in a month.

How much does SIP Trunking cost?

SIP Trunking cost may vary depending upon various factors such as your vendor, equipment, implementation fees and monthly service fee that needs to be paid to the vendor. Usually, vendors put the monthly SIP Trunk pricing between $20 and $70 per user excluding the upfront cost associated with SIP setup. The following pricing overview will help you to develop a better understanding of the full cost of switching to SIP including the price you pay for setup and the ongoing monthly service.

SIP Setup Fees

Many business-class SIP Trunking vendors charge a SIP setup fee. Some vendors offer free setup, however, they may charge a higher monthly rate. Generally, the setup fee includes the cost of the consultation, implementation and quality testing which ranges from around $50-$250.

New Phone Lines

If an organization switches to SIP to get new phone lines and provide direct inward dial numbers for more users, it will be charged a fee of $10 to $25 per line.

Number Porting Fee

If you are moving away from your current vendor you can choose to retain your existing phone number by porting it to your new vendor. However, there may be a porting fee that you need to bring into considerations. Depending upon the size of your business your cost and porting time may vary. It can take from 2 days to 2 weeks and cost between $15 to $30 per phone number. Per the Federal Communication Commission guidelines, it is the legitimate right of your organization to have your contact information and retain it even after you switch to SIP Trunking.

Handsets and PBX Configuration

SIP Trunking users need an IP-compatible handset. The cost varies depending upon the brands and features of the handset. Generally, your organization is expected to pay between $50 and $1000 per handset. For PBX and PBX configuration your organization should expect to pay between $500-$100,000. To avoid these heavy PBX related costs your best bet is to opt for Hosted PBX solutions. This is not only cheaper than the inhouse PBX but also takes a load of PBX maintenance off your shoulders.

Monthly Service Fees

This is the ongoing monthly fee your organization needs to pay to the SIP Trunking provider. It generally ranges between $20-$75 per phone number.

Add-on Features

If an organization chooses optional add-on features for internal and external communication, then it can increase the monthly fee per user.

Choosing the Highest Value SIP Vendor

The cost of implementation and monthly services in your organization depends upon the type of equipment you buy to switch to SIP, the type of handsets and the add-on features. To ensure significant cost saving, your organization needs to select the right vendor who can fit within your budget while offering the quality and redundancy guarantee you need to communicate with your customers. A company needs to choose the highest value SIP vendor.