BandTel VoIP Business Solutions

SIP Trunking vs. Hosted VoIP

TDM Centrex died with advent of the PBX. Hosted VoIP, which is nothing more than  Centrex over IP, will end up on that same  road to nowhere.

With the advent of SIP Trunking, and the IP-PBX, that same evolutionary process is now repeating itself. SIP Trunking is replacing hosted VoIP because it’s a simply a  better more cost effective solution.

So move past hosted VoIP solutions, and optimize you enterprise communications with BandTel VoIP SIP Trunking.

SIP Trunking, combined with an IP-PBX,  offers you significant advantages over hosted VoIP for your enterprise. Here are some of the reasons why SIP Trunking from BandTel is a superior solution:

1. Security Risk- Hosted VoIP services make use of techniques (such as STUN) that try to keep pin-holes open in your corporate firewall for the VoIP service to work. This is a dangerous arrangement, as just about anything else can squeeze through those pin-holes. Leaving ports open for a hosted VoIP service defeats the purpose of your firewall, and leaves you open for some serious security breaches.

2. Hosted VoIP is a Bandwidth Hog - Hosted VoIP does not take advantage of the trunk side to station side ratio like an IP-PBX does. As a result hosted VoIP users end up using far more bandwidth in a hosted environment then would be the case in a SIP Trunking IP-PBX environment (as much as 6-8 times more).

An example; you dial a four digit extension to the cubical next to you on your hosted VoIP service Your voice stream is sent out your organizations corporate firewall, out to the hosted ITSP, then back from the hosted VoIP ITSP, through your firewall, and then finally to the called party sitting next to you. So the whole time you are speaking to the person in the next cube over you are using as much as 160 kbps of outside bandwidth. That is wasteful, costly, and unworkable when trying to scale up to something beyond a few phones.

Conversely, with an IP-PBX you keep all the voice data streams internaly for in-house call traffic, and thus use no outside bandwidth. The bottom line is hosted VoIP simply does not scale. Anything past eight phones becomes a significant problem as a result of this poor utilization of outside bandwidth.

3. Configuration & Provisioning Control- in a hosted VoIP environment all your setup and configuration information has to be controlled, stored, and administered by the ITSP at their back office facility. As such the hosted VoIP ITSP is involved in every facet of your corporate communications configuration and provisioning process.

Conversely, with an IP-PBX and SIP Trunking, you are in control of the entire configuration for your enterprise. You do not need to involve the ITSP. By using an IP-PBX with BandTel SIP trunking you, and not the phone company, are empowered to manage your communications provisioning processes.

4. Hosted Equals Hostage- with hosted VoIP services you are held hostage to a single VoIP provider. You have no choices in using a second service provider should things not work out. But with SIP trunking changing ISTP's is as simple as a key click. If for any reason a given SIP VoIP supplier is not providing the needed services it’s a simple reconfiguration of the IP-PBX to move you to a new carrier.

This flexibility of moving to new carriers empowers the end user, and creates a very competitive marketplace for SIP trunking providers. BandTel thrives in that environment as our service is second to none. In fact most often times BandTel sees itself on the receiving end of that carrier reconfiguration key-click by the end user.

5. Hosted VoIP MRCs are costly- with Hosted VoIP one does not reap the benefits of a reduced trunk/station ratio like that found in an IP-PBX. With hosted VoIP the deployment it is in essence one trunk for each station (phone). But with SIP trunking and an IP-PBX you will in general have a 6 to 1 ration of stations to trunks, thus lowering your stranded monthly recurring trunking costs by that factor.

That MRC leverage ratio is one of the key reasons TDM Centrex died out. It will also be one of the main reasons hosted VoIP will loose out to SIP trunking. Hosted VoIP is simply not cost effective due to the wasteful MRC trunk charges it forces on the end user. As a result hosted VoIP services cannot compete economically with SIP trunking solutions, such as that offered by BandTel.

Summary: VoIP SIP Trunking offers you significant communications advantages over hosted VoIP and legacy TDM services. Let BandTel show you how to move your organization to the next level in telephony, and realize all the benefits and savings SIP Trunking technology is capable of bringing to your enterprise.

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Next Steps:

• For more about SIP trunking see the “White Paper Section” of our website

• To learn more IP-PBXs support on the “BandTel N-Plus Network” see the  “IP-PBX Interoperability section”: on our website

• If you have a question, would like a quote, or would like to place an order, please call or email  BandTel’s sales department:

Tel: 800.730.2870, 949.640.9700 opt 2
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