Since its inception in the mid-1990s, voice-over-internet-protocol (VoIP) phone systems have exploded in popularity, becoming the most popular option for internal and external communications in businesses of all sizes. For businesses with hundreds or thousands of internal lines, like hotels, hospitals, and office buildings, the advantages are even more pronounced.
One of the main advantages of a VoIP system is cost, especially when it comes to expanding or changing the various phone lines in your hotel. But how does a VoIP system save you money? And how much can you expect to save? There are several factors to consider.
The Difference Between SIP and Analog Trunking
First, a quick refresher. A “trunk” is just the industry term for a phone line. Each individual phone number that you can dial into or out from is a trunk, which means a typical hotel usually has one for each room, one for the front desk, and a dozen others for maintenance, the restaurant, the manager’s office, and so on.
Before VoIP systems, each trunk had to have its own physical copper wire that connected that particular handset to the phone lines outside the building and the rest of the world. If you wanted to add a new phone, you needed to run a new wire, which meant cutting holes in the walls and floors.
With SIP (session initiation protocol) trunking, all of your phone calls are transmitted over the internet instead. This means you don’t have to pay the local phone company at all, instead simply add your phone system to your existing internet subscription and paying for bandwidth accordingly.
How SIP Trunking Saves Money
The first and most obvious avenue for savings from a SIP trunking system is that you don’t have to pay the phone company! Since all your phone traffic goes through your internet connection, you’re only paying the monthly bill for the internet subscription that you already have. But there are other cost benefits, too:
- Installation is much more affordable since there’s no infrastructure to be installed.
- Phonesuite charges a monthly operating expense rather than a large capital expenditure upfront, so you don’t have to worry about the cost of a single large payment
- Only paying for the trunks that are actually in use can save you up to 70 percent on your monthly bill
- Long-distance calling and faxing is much less expensive over a SIP trunk than an analog phone line
- Internal calls between various locations are completely free of charge
- Upgrading is much simpler since you can add or change functionality via a software portal in any browser — no installation or new hardware is required
How Much Can SIP Trunking Save You?
When Phonesuite replaces a traditional analog phone system, we switch analog trunks to SIP trunks, which offer a substantially more affordable monthly expense compared to the huge upfront costs of analog systems.
On the left is what a client was paying on their previous analog system, while on the right is what they’re paying now for Phonesuite service. While in this example the monthly cost per room is marginally higher, we saved the customer almost $10,000 on installation — and their new system includes the flexibility, versatility, service, and future upgrades that only a VoIP system can offer.
Talk to Phonesuite Today
Every hotel is different — some customers prefer to pay a large upfront cost with smaller monthly payments to follow, while others don’t have the cash in their budget for an upfront payment and would rather spread the cost over the length of their contract. At Phonesuite, we’re happy to structure our contracts to match your business needs. If you’re curious about the cost of switching, contact Phonesuite today!
