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October 23, 2015

Frost & Sullivan Report Examines Impact of SIP Trunking on Legacy Services


By Michael Guta Contributing Writer



The telecom industry is undergoing a transformation as IP telephony continues to deliver more options at better price points. A new report by Frost & Sullivan looks at how SIP trunking is responsible for driving the changes that are taking place in the telecom sector regarding business communication services.


The report, titled “Unshackling the Power of SIP Trunking,” says two technologies in particular, Voice over Internet protocol (VoIP) and session initiation protocol (SIP) trunking services, are about to take over as the links from businesses to the public switched telecom network (PSTN).

The growth in SIP trunking highlights the fast adoption rates of the technology by businesses of all sizes. According to the firm, the North American market in SIP trunking services currently generates well over $3.5 billion annually, with a forecasted compound annual growth rate (CAGR) of 21.2 percent through 2020.

Frost and Sullivan said VoIP and SIP trunking don’t have the same limitations as legacy time division multiplexing (TDM) telecommunications services. This has opened new capabilities that TDM is not able to deliver, as businesses now expect communication services with scalability, flexibility and customization to develop solutions for their particular needs. Additionally, greater levels of control, management and transparency have become just as important as the services they are obtaining.

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“Ultimately, the flexibility in scaling SIP trunks is only limited by the amount of transport bandwidth available. As such, forward-looking SIP trunking service providers are extending administrative rights, analytics and management tools, and offering self-service capabilities to their customers. With a powerful set of tools, SIP trunking services are more akin to a Software as a Service solution than a telecommunications service,” said Michael Brandenburg, industry analyst at Frost & Sullivan.

Brandenburg identifies several SIP trunking control layers: service provider management and control; shared management and control with Web portals; and control as a service through APIs. Finding the right layer of control for a business is essential because it will determine how an organization will be able to manage the SIP trunking deployments it has in place.

Service provider management and control are best suited for small businesses that have limited IT resources. They can experience all the benefits of the technology, while outsourcing the management and administration of the services to third-party vendors or the service provider itself.

Shared management and control is for most businesses and enterprises that are able to manage their service with a web-based portal allowing administrators to customize their communications needs. This provides control of the communication services infrastructure so they can adapt to different type of environments, mainly by identifying call volume patterns and adjusting their SIP trunking.

The control as a service through APIs model is for enterprises that are looking for a level of control with provisioning that is capable of adapting to high levels of scalability. Service providers offer application program interfaces (APIs) to customers so they can leverage voice and messaging service capabilities without having to be an expert in SIP trunking services


Edited by Kyle Piscioniere
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