IP Trunking Skyrockets in Popularity

IP Trunking allows companies to converge voice and data traffic on a single IP network. This explains why an increasing number of companies are turning to this valuable telecom solution. According to a recent report from Infonetics Research, VoIP service revenue exceeded $1.3 billion in 2004 and is forecasted to skyrocket to a whopping $19.9 billion by 2009 in North America. That represents an amazing 1,431 percent revenue increase over just a five-year period! The research also shows that managed IP PBX services, which are often used for medium- to large-scale businesses, made up more than half of the VoIP market in 2004.

Popular Choice

IP Trunking is such a popular solution because it offers companies inbound, outbound or two-way voice over IP (VoIP) service connectivity to a CPE-based IP PBX, which merges voice and data traffic onto a single IP infrastructure. This offers companies numerous benefits.

VoIP can reduce the amount of equipment required to manage disparate networks while decreasing instances of underused bandwidth. On average, this can save a company anywhere between 20 and 50 percent in network support costs as compared to separate voice and data networks.

If, for example, a large law firm in Chicago wants to more efficiently manage their telecom budget, the company's IT manager may recommend switching to IP Trunking. By making the change, the firm could save a significant amount of money because they would combine their voice and data traffic onto one network. This would require less equipment while maximizing its available bandwidth. Additionally, the firm would be able to make free (site-to-site) long-distance calls to clients throughout the nation based on their program.

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