From the SIP Trunking Experts

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September 07, 2010

Real-time SIP Trunking Is Lucrative Option


By Ed Silverstein SIP Trunking Report Contributor



It makes a lot of sense to get residential and business VoIP services because they provide major cost savings – especially given the current recession. In addition, SIP Trunking service revenue is also expected to increase significantly in coming years based on the latest projections, according to IVR Technologies, Inc.


“Demand for residential and business VoIP services continues to grow through the economic downturn because of the cost savings they provide,” says Diane Myers, directing analyst, service provider VoIP and IMS, Infonetics Research. “As a result, in 2008 the VoIP services market had healthy growth of 33 percent to $30.8 billion. For the first three months of 2009, service providers experienced an average of 40 percent to 50 percent year-over-year growth for IP Centrex, indicating the demand for outsourcing and managed solutions remain healthy.”

“We expect hosted UC services to take off, with worldwide revenue doubling between 2009 and 2013, and we forecast SIP Trunking service revenue to hit an 89 percent compound annual growth rate from 2008 to 2013,” she added.

IVR Technologies, Inc. says that based on these promising industry statistics, SIP Trunking is well-positioned for growth, but how can a service provider best position itself to take advantage of this potentially lucrative market while minimizing the downside?

Providers can easily enter the market by providing IP origination and termination services over fractional virtual lines.

The provider also needs to be aware of the back office management of the service and be very concerned with mitigating his/her exposure to fraud and account delinquency.

Today, most carriers collect the Call Detail Records (CDRs) in a historical post-call manner then rate the CDRs to generate line item charges and then mediate all of the information into a customer bill. This process takes times, is highly susceptible to fraud, human error, capacity overruns, orphaned records, collection issues and bad debt — all issues that weigh heavily on the business and drive up administration overhead while reducing profitability. 

There is a better way to manage SIP Trunking services and it is through the adoption of real-time authorization, rating, routing and billing technology, according to IVR Technologies, Inc.

By operating the SIP Trunking service in real-time in the front-end and back-end of the network, the service provider can reduce fraud, increase profitability and reduce administration overhead through real-time balance updating, up-to-the-second credit checks, multiple layers of call traffic authentication, sophisticated real-time rating and billing and granular routing. With the addition of real-time authentication, rating, routing and billing functionality, the service provider can offer prepaid/postpaid/limited credit and flat-rate billing programs to even the most credit-challenged customers with the security of knowing their exposure is capped. With real-time SIP Trunking, the carrier will have greater peace of mind knowing that safeguards are in place, slow and uncollectible accounts are eliminated, a wider profile of customers can be serviced and the human resource burden has been significantly reduced through the latitude, flexibility and control that real-time services bring to the next-generation network. For more information, please click here.

A solution IVR offers, called “Talking SIP,” provides for real-time SIP Trunking at a very affordable price with a quick ROI for the service provider in order to allow them to contain costs, reduce fraud, automate customer payments, and improve cash flow.  

Talking SIP is an industry leading application, media and billing server that powers some of the largest and most recognized networks around the world. Designed specifically for next-generation carriers and service providers both small and large alike, Talking SIP helps them drive revenue to their networks, increase their profit margins and cultivate subscriber loyalty through innovative in-demand services, creative billing options, and a consolidated network architecture that greatly reduces the CAPEX and OPEX costs normally associated with running an intelligent network.

The core focus of Talking SIP is to the service provider with the ability to offer innovative bundled services that attract and retain customers while driving revenue and profitability to a network while still reducing operating and administrative overhead.

To find out more about IVR Technologies, visit IVR Technologies at ITEXPO West 2010. To be held Oct. 4 to 6 in Los Angeles, ITEXPO is the world’s premier IP communications event. Visit IVR Technologies in Booth 231. Don’t wait. Register Now.


Ed Silverstein is a contributing editor for TMCnet's InfoTech Spotlight. To read more of his articles, please visit his columnist page.

Edited by Ed Silverstein
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