Author: Jim Machi – General Manager CCD, Sangoma
Many of us in the industry are immersed in VoIP on a daily basis. We can be surprised that: people still have kitchen phones, telephone poles still exist, and gateways are still out there. To people working with it daily, it can seem like the whole world is on SIP and IP already. And really, in just a short 20 years, the landline and mobile world has changed immensely.
There are many ways to look at how far industry has come, or how far it still has to go to be fully on IP. One way is to look at the penetration of SIP trunks. An enterprise using SIP trunks would signal a big move to IP communications. According to IHS Markit1, the worldwide SIP trunking revenue totaled $3.3B in the first half of 2017, growing 12%. In that same timespan, SIP trunk seats increased 26% to 30 Million seats. According to TechNavio2, the SIP trunking market is expected to grow at a compound annual growth rate (CAGR) of over 18% from 2017 to 2021. And it’s not just happening in the United States, the leading SIP trunking market. According to Frost and Sullivan3, the market is expected to grow at a CAGR of 31% from 2017 to 2022.
So why the use of SIP trunks to begin with? It all started with cost. The driver for VoIP was IT cost savings and the promise of richer communication offerings; which has proven to be true. So, it is inevitable that the ITSP would start to become involved and hence the move to a SIP trunk instead of a PSTN trunk. Even more cost savings (given ethernet was already coming into the building). So, this elimination of the PSTN network and IT infrastructure is a huge driver.
In part two of this blog, I’ll explore more reasons for the rise of SIP trunking.
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SIPStation, Sangoma’s SIP trunking solution: sangoma.com/sipstation/