How to use SIP to change your phone service quickly and cost-effectively Featured

9:17pm EDT November 30, 2012
How to use SIP to change your phone service quickly and cost-effectively

If your business is looking for a better way to communicate, Session Initiation Protocol (SIP) may be the answer. SIP, a signaling protocol, can improve voice and video over Internet Protocol, video conferencing and file transfers. And best of all, it can spell substantial savings for a business compared to traditional phone lines, says Anton Loon, director of enterprise sales at PowerNet Global.

“When a company uses SIP technology instead of traditional phone lines, it can move much more quickly and at a lower cost,” Loon says. “SIP solutions are available for businesses of all sizes, from a small company that needs only one line with local and long distance for about $20 per month, all the way to corporations that have large call centers that operate 24/7.”

Smart Business spoke with Loon about how companies might benefit from implementing a SIP solution.

What is the primary difference between a SIP solution and traditional call routing?

A traditional time-division multiplexing (TDM) system uses physical switches to route calls. SIP uses IP routing, which provides a company’s employees with a much easier way to connect with each other, as well as the outside world.

SIP is not a new technology, so why have companies only recently begun to adopt it? 

In 1994, IT managers knew that ‘AT&T worked’ in the telecom industry. If a business switched to another company and there were mistakes as a result, that IT manager’s head was on the line.

It’s been the same with SIP over the last few years. IT directors and managers have been leery about making the switch to this technology because, as with most things in life, change is scary. However, the technology has now progressed to the point that the cost savings are just too good for a business to pass up.

How can SIP improve a corporation’s flexibility and efficiency?

In terms of flexibility, a business can have the service up and running within 24 hours of requesting it. For example, a construction company can add trailers to various job sites and have phone service at those sites within a day.

The same holds true if a business moves to a new location. With a traditional system, you would typically have to wait 30 to 45 days for the new phone lines to be operational.

With a SIP solution, you can move around and operate anywhere in the world. SIP also provides flexibility for call center operations, because you can launch a new operation within days. For businesses like telemarketing centers, this means you can start selling more quickly.

In terms of efficiency, choosing a SIP solution will eliminate the 30- to 45-day waiting period required to implement a TDM system, as well as all the time that is required to coordinate the effort between all parties.

What are the three most important things that companies need to know about SIP technology?

First, that it works. There is no reason to fear this technology.

Second, it’s scalable. This is important because it allows you to start small to test the waters in order to get comfortable with the technology. It also allows you to ramp up for a larger call volume at any given time without having to add equipment to handle the increase. For example, if you want to launch a new outbound calling campaign tomorrow, you can do that. It also goes the other way, in that you can cut back on the number of phone lines servicing your company if business slows down. There’s a misperception that SIP is fraught with quality issues, but that is not the case. In our experience, there are no more service tickets with SIP than there are with traditional TDM systems.

Finally, the technology is here to stay, and it will only get better and more robust as time goes on. Another common misconception about SIP is that it’s the future, but it’s not. It’s here now, and it’s not going anywhere.

How is SIP being used practically in businesses?

A good example is a company in the health care industry. Their patients have to call in to confirm appointments and get verification of their medications. Obviously, this is a critical operation. One company had a TDM system and was dealing with high costs and quality issues. Then it switched to a more cost-effective SIP solution with a redundant platform. Now if it has problems with one of its carriers, it can signal to another platform. In total, it can toggle back and forth among three platforms to avoid outages.

How can a SIP solution help companies better manage remote employees?

Remote employees have become more commonplace today — not just salespeople, but call center employees, as well. SIP solutions improve productivity by enabling remote workers to quickly and easily access the company network.

In addition, sophisticated reporting tools such as hosted PBX solutions are available that can help managers monitor the number of sales calls being made, to whom they are being made, when and at what cost per call.

Anton Loon is director of enterprise sales at PowerNet Global. Reach him at (866) 764-7329.

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