Session Initiation Protocol (SIP) trunk helps in replacing the requirement of traditional analog, T1-based Public Switched Telephone Network (PSTN) connections with termination and allow company to get public or private internet connection through a SIP provider. These session initiation protocol providers are also known as Internet Telephony Service Providers as they offers PSTN service on a minute or channelized pricing model.

These session initiation protocol is widely used for Internet telephony, instant messaging, over Internet Protocol (IP) networks. Session initiation protocol trunk is one of the IP solutions that helps in reducing use of fixed PSTN lines with single link. This also helps in reduction in cost of multiple lines and hardware requirements for multiple PRI ports. This advance solution allow company to resolve scalability, maintenance, and convergence issues.

Session Initiation Protocol (SIP) trunkMarket: Drivers and Challenges

The major factor driving the adoption of SIP trunk is the cost efficiency of the solution. The SIP trunk allow companies to pay for the number of lines they need as opposed to getting locked in to excess analog lines or partially-used T1s and PRIs. This increases the saving as user purchases only necessary number of channels and paying for the particular time it is used. Moreover, session initiation protocol trunk helps in increasing reliability of services by adding VoIP services in it.

The key challenge restraining the market for SIP trunk is the security crackdown. The integration of VoIP with SIP trunk services affects security as in case of SIP trunk is stolen, the VoIP password become easy to crackdown. Moreover, at the time of hacking of SIP server, the hacker can harm the trunk by injecting it with a forged source code that will lead to a road map for the hacker.

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Session Initiation Protocol (SIP) trunk Market: Segmentation

Segmentation on the basis of Industries:

Education
IT & telecom
Retail
Media & Entertainment
BFSI
Healthcare
Government
Key Developments:

In June 2016, 3CX, a unified communication solution provider has entered into the partnership with Partner-Netwerk, a VoIP provider. With this partnership both companies can offer various tele services such as internet connectivity, IPTV and SIP trunking to customers.

In September 2015, GTT acquired One Source Network a provider of global data, Internet, Session Initiation Protocol (SIP) trunking and managed services. The acquisition helps GTT to solidify it presence in SIP trunking market

In Session Initiation Protocol (SIP) trunk market there are many vendors some of them are 3CX ltd, XO Communication, Shoretel Inc., Level 3 Communications, NTT communications, Digium Inc, KPN International and others

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Regional Overview

North America is holding the largest market share currently for Session Initiation Protocol (SIP) trunk market due high adoption of session initiation protocol trunking among enterprises in U.S. to reduce their monthly telecommunication expenses. Companies such as Digium and NTT communications are also working towards the enhancement of SIP trunk services with the partnerships and acquisitions in this market to increase market opportunities.

In Europe region, the market for session initiation protocol Trunking is witnessing high growth rate due to presence of large number of SIP trunk service providers on real time statistics. Moreover, session initiation protocol Trunking reduces number management of PRIs across multiple site due to which Europe as well as APAC region is adoption this technology.

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