As companies upgrade their internal databases, networks, and other communications, they usually find that they have excess capacity beyond their current needs.Given the rise in virtualized and Cloud-based services, it’s inevitable that many see this as an opportunity for further monetization. If a company is only using half of the hardware’s capacity, why not find a business that will pay to use the other half?
This has now extended to SIP trunking, with more Cloud-oriented organizations looking to resell or bundle their own internal communications.When they’re buying bandwidth “raw” from the ISP, with no overhead besides the pure data charges, they’re in a prime position to leverage that bandwidth in their service offerings.
Benefits of SIP Trunking
In short, SIP trunking is a newer revision of Voice-over-IP (VoIP) technologies, with a well-established protocol that allows for easy transmission of voice, video, or other data to\from a wide variety of devices.
Its strength lies in its near universal compatibility with most modern end-user devices and relatively inexpensive hardware. At the low end, the equipment needed to establish on-site SIP trunking is only in the low four-figures, and leasing options are becoming popular as well.
Most Cloud services organizations can afford to buy into SIP trunking today.
Why Buy Voice Service From Non-Phone Companies?
For comparison sake, here’s an idea of how margins look with voice services.
In terms of raw dollars, the cheapest a company is likely to find local + unlimited long distance on a line is $75/month.On the other hand, SIP-based voice communications cost less than a cent per minute.A thousand minutes of voice would cost less than$10.
So a company selling 1,000minutes of voice for $25 is making a substantial profit, while significantly undercutting the local telephone company.
In other situations, companies haven’t charged for the service, but simply include it in their “premium”bundles as an added incentive.
Major Stumbling Blocks in SIP Reselling
Businesses interested in the monetization possibilities with SIP trunking should also be aware of potential issues that can arise:
1. Unforeseen Infrastructure Needs
SIP reselling puts a strain on all of a network’s systems.Just having the hardware to handle the trunking may not be sufficient to carry heavy loads without other upgrades.Failure to upgrade would nearly guarantee the failure of the venture.
2. Becoming a Phone Company
A company providing phone service to its customers should expect tobe treated as a phone company by customers.High levels of reliability would be expected, and there would be increased demands on service staff.
3. Outside Dependencies Beyond Direct Control
Company A cannot resell SIP services without Company B providing them in the first place.If Company B fails, Company A is left in a bad situation.If there are multiple levels of outsourcing involved, through Companies C and D, this can quickly become a tangledand risky web.
Every organization in the chain has to be absolutely reliable, but that sort of reliability is hard to find and harder to guarantee.
Reselling SIP Services Is Growing
Despite these risks, the reselling of SIP trunking is growing steadily and likely to continue doing so for the foreseeable future.With proper planning and informed risk management, it offers new opportunities for services monetization.