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How Much Can You Save With SIP Trunking?

Since its inception in the mid-1990s, voice-over-internet-protocol (VoIP) phone systems have exploded in popularity, becoming the preferred option for internal and external communications for businesses of all sizes.

For hotels, which can have hundreds or thousands of internal lines, the advantages are even more pronounced. A key advantage of a VoIP system is cost, especially those associated with expanding or changing the various phone lines in your hotel. But how does a VoIP system save you money? And how much can you expect to save? There are several factors to consider.

The Difference Between SIP and Analog Trunking

A quick refresher: a “trunk” is the industry term for a phone line. Each individual phone number that you can dial is an example of a trunk. A typical hotel has one for each room, one for the front desk, and a dozen others for maintenance, the restaurant, the manager’s office, etc.

In an analog system, each trunk has its own physical copper wire that connects the handset to the phone lines to the outside world. To add a new phone required running a new wire, which meant cutting holes in the walls and floors.

With SIP (session initiation protocol) trunking, all of your phone calls are transmitted over the internet. This means you’re no longer paying the local phone company for service. instead, your phone system will be tied to your existing internet subscription.

How SIP Trunking Saves Money

The first and most obvious avenue for savings from a SIP trunking system is that you don’t have to pay the phone company! Since all your phone traffic goes through your internet connection, you’re only paying the monthly bill for the internet subscription that you already have. There are other cost benefits as well:

  • Installation is much more affordable since there’s no infrastructure to be installed.
  • Phonesuite charges a monthly operating expense rather than a large capital expenditure upfront, so you don’t have to worry about the cost of a single large payment
  • Only paying for the trunks that are actually in use can save you up to 70 percent on your monthly bill
  • Long-distance calling and faxing is much less expensive over a SIP trunk than an analog phone line
  • Internal calls between various locations are completely free of charge
  • Upgrading is much simpler since you can add or change functionality via a software portal in any browser — no installation or new hardware required

How Much Can SIP Trunking Save You?

When Phonesuite replaces a traditional analog phone system, we switch analog trunks to SIP trunks, which offer a substantially more affordable monthly expense compared to the huge upfront costs of analog systems.

Here’s an example:

SIP Trunking price comparison chart

On the left is what a client was paying on their previous analog system, while on the right is what they’re paying now for Phonesuite service. While in this example the monthly cost per room is marginally higher, we saved the customer almost $10,000 on installation — and their new system includes the flexibility, versatility, service, and future upgrades that only a VoIP system can offer.

Talk to Phonesuite Today

Every hotel is different — at Phonesuite, we’re happy to structure our contracts to match your business needs. If you’re curious about the cost of switching, contact Phonesuite today!

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