The Difference Between Retail and Wholesale SIP Trunking

Jim Machi
VP of Marketing, Sangoma

SIP trunking is growing. According to the Eastern Management Group, the global SIP trunking market was approximately valued at $14.4 billion in 2018 and projected to grow 7.6% annually through 2020. The predominant reason for this is the growth of IP phone systems, which need to be connected to SIP Trunks.

But if you are a business, what types of SIP trunks should you buy – retail or wholesale?

Retail SIP trunks are designed for small to mid-sized businesses and are bought from a provider in much the same manner as the business buys other forms of telephony. Pricing is typically calculated per line, per month.

Wholesale SIP trunks are intended for service providers and large enterprises that consume large amounts of telephony service, either internally or as a provider. There is often a minimum commitment per month (in the form of usage) that you’d be required to sign up for, and after that, it would be metered.  In other words, this is for organizations that utilize a lot of minutes, or intend to resell into the retail business.

There are many other considerations as well, including SMS, fax, and fraud protection. Please read our whitepaper for more information.

Sangoma offers both retail SIP trunking and wholesale SIP trunking.

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