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Factors That Affect the Cost of SIP Trunking

December 30th, 2022 | 3 min. read

By Jordan Pioth

Person sitting at desk talking on phone

When looking for a calling service it is important to understand the full price of the service before moving forward in the buyer’s journey.

If you sign a contract with a service without knowing all of the direct and indirect costs, you could be locked into a service that is more expensive than what you expected to pay.

Coeo has delivered SIP Trunking to hundreds of customers and knows how important it is to fully understand the price of the service.

We want to provide you with all of the factors that go into the price of SIP Trunking so you can make the best buying decision for your company.

By the end of this article, you will know what SIP Trunking is and the factors that go into the price of SIP Trunking.

What is SIP Trunking?

Session Initiation Protocol (SIP) is an application layer protocol that allows you to run your phone system over the internet rather than a traditional copper phone line.

Trunking refers to multiple phone lines used by many users which connect to a telephone network.

The main objective of SIP Trunking is to bring a standard PBX phone system to the cloud. Because you can use your existing PBX phone system, you achieve lower costs and scalability of the cloud-based phone system.

Factors that affect the cost of SIP Trunking

With SIP Trunking, the cost is directly related to the functionality you select for your organization. Since many factors affect the price, the cost of SIP Trunking will vary from one customer to the next.

The main factors that go into calculating the price of SIP Trunking include the number of channels, outbound call rates, add-ons, and set-up fees.

●      Number of channels

One factor that goes into the cost of SIP Trunking is the number of phones and channels that your company needs to have. The number of channels you purchase will determine how much you will be charged.

You can convert your entire PBX phone system to SIP and have channels for all of your employees. However, you don’t have to convert every PBX phone to SIP if you don’t want to, allowing you to save money if that is an option.

Of course, the more channels that your company needs, the more expensive your SIP Trunking is going to be.

●      Outbound call rates

Depending on the SIP provider you choose, you may have to pay for outbound calls, especially when making calls internationally.

Some organizations offer metered SIP Trunking plans which are plans that include a monthly fee and charge per minute for outbound calls. There are also unmetered plans which include a monthly fee and unlimited calling for a fixed price.

Of course, if you select a metered plan, you will have to pay for outbound calling which will impact the overall cost of your solution.

A metered plan will add additional expense to your SIP Trunking and depending on the provider, the rates, and how often you make outbound calls will be another set of factors in determining the cost of SIP Trunking.

●      Add-ons

Additional features and services may be added to your SIP Trunking solution for an extra charge. Not every SIP service offers add-ons so making sure that you choose the right service that meets your company's needs is important.

Additional features such as call recording and auto attendant can be added to your SIP Trunking. Call recording will allow you to record and listen to calls.

Auto attendant is a feature that allows you to set up an automated answering service that directs customers to the most appropriate person or department to address their needs.

●      Set-up and installation fees

Some SIP providers will charge a one-time installation or set-up fee to deliver your solution. SIP does not require much additional equipment since your existing PBX can frequently be utilized, often avoiding an installation or set-up fee.

However, if your company decides to purchase new phones or Session Border Controllers (SBC) as part of your SIP Trunking service, you may incur an installation fee in addition to the cost of the phones.

An SBC is a security device that controls how phone calls are initiated, conducted, and terminated on a voice-over-Internet Protocol (VoIP) network. They act as routers for your voice network helping you avoid being a victim of a cyberattack.

The more new equipment and installation required for your SIP Trunking, the more expensive your installation fee is going to be. And even among providers, similar services are often priced differently.

Next steps to purchasing a SIP Trunking service

Now you know what SIP Trunking is and the factors that affect the cost of the service. Knowing this will allow you to estimate the cost of your SIP Trunking service and allow you to make a better buying decision for your organization.

Without knowing the full cost of the service before purchasing SIP Trunking and the related services you need, you may end up with an expensive solution that doesn’t meet your organization’s needs.

While SIP Trunking is often one of the least expensive calling services, it is still important to understand the price and the full range of solutions you’ll receive for that price.

Coeo has delivered SIP Trunking to hundreds of customers and knows how important a high-quality calling service is to an organization.

We want to give you all of the information you need on SIP Trunking so you can make the best decision for your organization.

If you would like to speak with our team to learn more about the cost of SIP Trunking or ask any questions you may have you can schedule an appointment.


Read these articles below to learn more about SIP Trunking:

Jordan Pioth

When he's not creating content for Coeo, Jordan loves to watch sports, hang out with friends and family, and anything sneaker-related.