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The world of SIP ( Session Initiation Protocal ), which is now the standord for  VoIP, has led to many predictions of an enterprise communications where all voice, video, data and multimedia would traverse a QoS (Quality of service)-enabled IP connection from the enterprise to the carrier network and beyond, unifying communications, integrating applications, and lowering costs.

Stanford Keen provides wholesale carrier grade termination.

In the real world, enterprises have been using VoIP trunks to reduce the toll costs between different sites in their private networks for many years now. These days it's typical for enterprises to run large-scale private IP WANs (wide area networks) on which the company's intra-organizational VoIP traffic travels. But it is also typical that VoIP communication outside the enterprise still involves circuit-switched handoff to the PSTN. That is enterprises are still maintaining PSTN circuits for connection to the public network.

In layman's terms, a SIP trunk is basically a VoIP trunk that utilizes SIP for session control.

This is important because:

• It enables a pure IP connection from the enterprise to the carrier (and connection through the carrier's PSTN gateway to the public network-the enterprise doesn't need to maintain its own circuit-switched handoff to the PSTN)
• The VoIP trunk is now a SIP trunk, so it can handle voice & data, and could handle video, broadband mobile, etc. bringing us that much closer to the multimedia communications future.

SIP trunking makes sense because SIP trunking provides a pure IP connection between the enterprise and carrier, it produces tangible benefits in cost savings and reduced monthly operating expenses since the enterprise:

• Only needs to maintain on IP-based connection for both data and voice (separate on-premise PSTN and data circuits no longer required). A reduced number of circuits equals less interfaces, reduced hard dollar costs and better efficiency.
• Businesses may choose to re-invest these savings in maintaining diverse and redundant IP-based connections to ensure superior reliability and security (disaster recovery)
• No longer needs to buy or maintain a local PSTN gateway. The recurring hard dollar costs of maintaining multiple PSTN connections and dedicated PSTN interface hardware are eliminated.
• No longer needs PRI/BRI connections (primary rate interface, basic rate interface). Costs are reduced because the enterprise's PBXs have a pure IP connection to the carrier's PSTN gateway. For example, calls destined for the PSTN are carried directly from the enterprise over the service provider's IP backbone to the PSTN gateway closest to the call destination-call expense drops significantly because local rates apply and less intermediary carriers are involved in transmitting the call.

The hard dollar savings SIP trunking delivers for enterprises are also joined by productivity and applications benefits that are emerging from SIP's role as the enabler of converged multimedia services. The benefits will include reduced cost of communication between enterprises, partners, suppliers and customers; and the enablement of multiple streams of real-time, context-aware communications including voice, video, and instant messaging. In the near future, SiP networking will provide the same benefits and access to application services for mobile users as mobile operators move to support SIP. SIP trunking is a critical part of the overall telecom vision because it provides the pure IP connection from enterprise to carrier for voice, data and multimedia which the IP-based network and services future requires.

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