If you pay for long distance, this next post is going to rock your world. When I call from San Francisco to New York, why does it cost money? You’ve probably never thought about why calls cost money to move across the country. The ugly truth is that although long distance used to be super expensive, it isn’t any more. The reason? SIP Trunking.
SIP (Session Initiation Protocol) is a communication technology that can link two pieces of hardware. This has a lot of possibilities, but let me tell you why you care: Long Distance Termination. Previously, carriers had to send signals along copper wires all across the country. Now, virtually every carrier, from AT&T on down, uses a SIP Trunked backend to nullify the cost of long distance transactions by sending your calls over their internet instead of over copper. The result is significantly less expensive call routing for the carrier, and now, SIP trunking is available to small businesses.
For Less than $25 a month, a business can get one SIP Trunk with unlimited local and long distance. Period. This is the end of Long distance bills as we know them. Essentially what’s happening from a technical perspective entails your call being routed over the internet, then turned into a copper phone call at the local area of your destination. This means that a call from SF to NY is treated like a call from NY to NY.
If you pay long distance charges, you should stop and take a look at SIP trunks. It can save a heck of a lot of money.
TL;DR: SIP Trunks eliminate long distance bills by routing calls over the internet. The real VoIP.