Sunday, 6 March 2011

No more phone bills, the promise of SIP circuits

Over the next few months all major Telco’s are set to launch SIP Circuits (Session Initiation Protocol).
If adopted by the SME market it is aimed at, these circuits will make the phone bill a thing of the past for many businesses.
At the moment, a business may have an ISDN30e circuit with 10, 20 or 30 x channels (telephone lines).
They will be billed around $24 per month per channel for rental, and then on top of that they’ll be charged for the phone calls they make over those lines.
As well as phone lines, most SME size organisations will have a separate dedicated circuit for connection to the internet, and will pay around $15,000 per year for a 10M dedicated internet circuit.
By contrast with a SIP circuit Telco’s will offer, for example, a 10M circuit that will combine internet connectivity with connectivity to the PSTN network on the same circuit. They’ll allow for say 10 or 20 “SIP Channels” costing $24 per channel per month, but will include 5,000 minutes of calls per channel per month included in this rental. The result is the customer will effectively get free calls on their Internet circuit and will no longer require a separate ISDN30e circuit.
If your organisation has a modern IP Telephony system, then the SIP circuit will connect directly to it. If you’ve got an older, TDM based telephony system, they’ll put a black box on site to convert the E1 signal from your PBX into IP for use on the SIP circuits.
The reduction in line rental and call costs may save a company tens of thousands of dollars per year, depending on their call pattern.
Voice quality is protected by setting quality of service at the end point and the destination point can be any SIPS or non SIP client.
The only loser in this move will be the Telco’s who will lose out in revenue terms, although by switching to the IP based circuits, their internal management costs should be much less than supporting the platform which the old ISDN30 circuits.

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