How to Become a SIP Trunk Provider

May 18, 2021

What Every SIP Provider Needs To Know

Whether you have an IT or telecom background or not, becoming a SIP provider may be an interesting option to meet customer demand and add an extra revenue stream to your business. It may be worth reviewing some concepts and other SIP trunking basics first.

What Is SIP and Other Basic Concepts

SIP stands for Session Initiation Protocol. According to the standardization entity, Internet Engineering Task Force (IETF): “SIP is an application-layer control protocol that can establish, modify, and terminate multimedia sessions (conferences) such as Internet telephony calls. SIP can also invite participants to already existing sessions, such as multicast conferences. Media can be added to (and removed from) an existing session. SIP transparently supports name mapping and redirection services, which supports personal mobility.” 

One of the most common business communications applications is using SIP and VoIP (Voice Over Internet Protocol) to connect a PBX (Private Branch Exchange) to the Internet.

On the other hand, the Federal Communications Commission defines VoIP as “A technology that allows you to make voice calls using a broadband Internet connection instead of a regular (or analog) phone line. Some VoIP services may only allow you to call other people using the same service. Still, others may allow you to call anyone who has a telephone number – including local, long-distance, mobile and international numbers. Also, while some VoIP services only work over your computer or a special VoIP phone, other services allow you to use a traditional phone connected to a VoIP adapter.”

Understanding these two concepts is critical because your customers may commonly confuse them. The reality is that, even though they both connect calls online, they are not the same. In a nutshell, SIP is an effective method to deploy VoIP in businesses, with low costs and more scalability. These two protocols, therefore, can work with each other.

With SIP trunking, another concept you must be familiar with, the SIP protocol connects one or multiple channels to a customer’s PBX via VoIP. The DIDs (Direct Inward Dialling numbers) and phone numbers link to the SIP trunks, and, in many instances, numbers use the SIP trunk as a port.

Besides VoIP calls, SIP trunks are also capable of transmitting instant messaging, multimedia conferences, enhanced emergency calls (E911), user preference information and a plethora of other SIP-based, real-time communication solutions.

How Popular Is SIP?

Companies of all sizes increasingly prefer SIP to enhance business communications. They are looking to transition to SIP or integrate it into their existing platforms, so now is ideal for expanding your service offering to offer SIP to meet the demand.

A good SIP provider makes a basic configuration even simpler and comparatively more affordable to design, utilize, maintain and upgrade. 

A recent report revealed interesting insights to explain why SIP adoption is becoming more popular. 

  • SIP trunking emerged as an effective cost-saving solution, and its adoption continues to grow across various sectors, including retail, IT, education, BFSI, media & entertainment  and healthcare. 
  • The demand for SIP trunking services could grow as much as a 13% annual rate until 2030, primarily driven by increased requirements of cloud-based SIP trunking services and the replacement of traditional ISDN.
  • End-users opt for SIP trunking services due to higher purchasing flexibility than TDM (Time-division multiplexing). 
  • Another typical behavior seen in several companies worldwide is their gradual replacement of WAN services, WAN connections and public Internet with SIP trunks.
  • The global SIP trunking services market could reach a staggering US$ 35.5B by the end of 2030.
  • North America is a prominent market for SIP trunking services globally. The market in the region reached a US$ 3,955.9M value in 2020.

With these numbers in mind, you will be able to explain to any customer how this technological trend is growing worldwide. Instead of your customers hiring a third party for their SIP needs, you can provide more comprehensive services so they can keep their telecom needs with one provider.

Related: How to Make Money as a SIP Provider

How Can SIP Help Improve Business Communications

As briefly mentioned above, there are many possible communication SIP applications businesses can leverage. If you are looking to become a competitive SIP provider, you should find a reseller program with a wide functionality offer at an affordable price. 

Leaders in the industry include these and more features in their SIP trunking services:

  • Direct Inward Dials or DIDs
  • Local and Toll-Free Numbers
  • Outbound International Service
  • FAX over IP Service
  • Toll fraud protection
  • E911
  • Call data records
  • Private labeling
  • Powerful and intuitive control panel

Be ready to ask your potential reseller programs if they have a comprehensive enough suite so you can quickly deploy it for your customers.

Related: What to Look For in a SIP Reseller Platform

Step by Step Guide to Become a SIP Provider

The revenue growth of the SIP/VoIP services reached $86.2B in 2020. This fact, along with all of the additional benefits of SIP trunking, makes becoming a SIP provider one of the trendiest career choices of the unified communications niche.

If you’ve decided to follow this path, here is a brief overview of how you can become a SIP trunk provider.

H3: Step 1: Find a Reseller Program

To get started, you will need to join a SIP reseller program or platform. There are many 

providers out there, but if you partner up with a reputable company, they will offer top-tier services other companies won’t.

These platforms will be your supplier for the best and most wanted features. They will also fulfill the following criteria, which will make the process easier for you to become a leading SIP provider:

  • Online sign-up process
  • No technical background required
  • Steady source of income
  • Robust software platform
  • No contracts, with a pay-as-you-go approach
  • Expert support available via multiple channels for you, your leads and your customers
  • End-customer billing and taxation included
  • Transparent commission payments, with a detailed breakdown of earnings for your records

Step 2: Build your Customer Base 

Once you’ve signed up with the best SIP trunking supplier, you may want to start spreading the word about this novel service among your current IT or telephony customers. Preparing a marketing or sales pitch for them will be helpful, especially if you already have an idea on how to improve their communications needs and budget with SIP.

Remember: You can offer a free trial for your customers and let them test in just a few minutes how SIP will change the way their clients, staff and other stakeholders connect.

H3: Equip your customers

The last part of your SIP trunk providing journey will be deploying end-user software or equipment. There are two ways to offer this to your customers. 

  • The first method allows your customers to bring their own devices for configuration. The “BYOD” approach enables customers who already have the necessary equipment to use their available resources at a reduced cost.
  • The other method is to provide your customer or end-user with the required equipment and/or software. With this approach, the customer will receive a bill for the equipment and all additional configurations you perform to activate the SIP service.

In a competitive market for VoIP and SIP trunk services, staying true to quality and solution-driven, innovative services are essential to keep your business afloat. Premium features, quality, reach and coverage are all crucial factors why you should opt for a quality service partner like SIPTRUNK. Get started today.