Insights & Resources

Hidden SIP Costs and Fees

Guide to the hidden fees that some companies tuck into monthly charges or the internal costs companies face when implementing SIP.

Josh Whitaker
Hidden SIP fees banner
While the benefits of SIP trunking are clear, and the reasons for switching are plentiful, there remain concerns surrounding costs—particularly hidden fees that some companies tuck into monthly charges or operation costs.

How does SIP trunking decrease costs?

Let’s get the most important things straight—SIP trunking can save organizations up to 50% in telecoms expenses, according to research by Gartner. The same research by Gartner suggests that SIP providers are lowering their prices and thus, prices are declining by 5-7% annually.
If you’re wondering how it’s possible for SIP trunking to enable such impressive cost savings, there are several reasons including:
  • Trunk aggregation : Centralized SIP trunking architecture and bandwidth optimizations mean reduced voice trunks and lower costs.
  • Access : Adding a few high-speed ethernet access links is cost-efficient.
  • Flexible implementation : Provision exactly the services you need and avoid paying for lines or minutes you’re not using.
  • Tariffs/Flat Rate : Billing for SIP calls can be tailored to your needs.

How to spot hidden SIP costs and fees

Yes, SIP trunking is cost-efficient, but the associated costs and fees that some providers roll into their service can eat into those cost savings.

Consider geographic location

First up, keep an eye out for how your provider charges for international calls. Each location has its own billing rate and some regions can be extremely expensive. Many providers offer functionality to restrict the locations an organization can call to avoid high location-based fees.

Number features

It’s wise to consider all of the features you need upfront, as you might get stuck with features you don't need or costs you weren't expecting. You can do this by confirming with your provider how they charge for each specific feature as the provider may have differing fees and pricing structures for each. Typical examples of features you might want to check include: - DID (Direct Inward Dial) Fees: It’s normal to pay a minimal monthly and initial setup fee for each local, toll-free and international DID number you require. - Porting: Phone number porting is the process of moving your current numbers to your new SIP trunk provider, which can be a trickier process than it sounds, and thus, more expensive. - Nomadic e911: This enables users to set any address in the US as the address to be transmitted to the nearest Public Safety Answering Point (PSAP) after a call is made to 911. For digital lines, this needs to be set up, and again, costs an additional sum. - Call recording and Caller ID

Hardware and system costs

Lastly, keep an eye out for both hardware and system costs that your organization might incur in order to get SIP trunking up and running the way you expect and require. For example, it may be the case that you need to procure physical SIP phones, or you may need additional security hardware, such as Session Border Controllers (SBCs). Both of these can be built-in, one-time costs that won’t show up on your provider’s quote.

About Telnyx
Telnyx delivers voice, messaging and more for applications and next-generation communications companies, and we offer the most flexible pricing options in the industry. All services and features are priced a la carte, so you only pay for what you use, and both flat rate or tariffed billing are available. Telnyx has done the work of spinning up a global infrastructure and navigating international regulations so you don’t have to, and that upfront investment produces inherent cost savings in all our services that we pass on to you.Speak with our customer success team to learn more.
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