01/30/2013
What is "SIP" and how can it save a company money?
SIP stands for Session Internet Protocol. SIP is used for setting up, modifying, connecting and disconnecting a two-party or multiparty communication session. SIP is typically used for executing video or voice calls over the internet. So what is a SIP trunk? In the most basic terms, it is a single voice connection that is placed over an Internet connection. The VoIP “trunk” is connected to a provider who, in turn, routes the calls through their gateway. The significant savings are possible because the provider that routes the calls can offer packages at dramatically lower costs. This is because a significant portion of the call travels, at almost no additional cost, over the IP network or the Internet, and the provider can eliminate low capacity network lines and replace them with multiple capacity IP connectivity. Furthermore, because the calls are placed on the most economical route, over the carrier’s IP backbone and then to the media gateway, charges are reduced by eliminating tariffs that would normally be placed on numerous connections.