The Cost Benefits of SIP

 By David Byrd

Today I am participating in a panel discussion, “The Conversion From TDM to SIP: Evaluating the Benefits of SIP Trunking,” at the ITEXPO Austin 2012. Among the topics to be covered are the cost benefits of SIP.  

Over the last few years, there have been detractors noting that certain estimates for savings when transitioning from TDM to SIP have been overblown. Consequently, some companies have delayed or abandoned the effort entirely. For most SMBs, the transition is easily monetized. It is in the enterprise space where simple VoIP supports intracompany calling may provide enough savings and optimization to preclude the effort of adding additional equipment to support SIP trunking.

The major access savings are listed as follows:

Clearly, moving to a service provider that can reduce the cost of calling by using IP communications is well worth the effort. And as most ILECs evolve their networks to IP more of their customers will benefit. It is difficult for the ILECs to compete with the ITSPs since they will experience a revenue drop per customer. However, at some point the revenue drop is preferred over the loss of the customer.

David Byrd is chief marketing officer and executive vice president of channel sales for
ANPI ZONE . He previously spent five years as vice president of marketing and sales for Broadvox and before that was vice president of channels and alliances for Eftia and Telcordia.