Industry Study Cites the Power of SIP Trunking to Drive Fundamental Change in Telecom

Posted on October 20, 2015

Innovative new SIP trunking market entrants offer enterprises greater flexibility, control and transparency over legacy telecom models

Seattle, Wash. – October 20, 2015 – Flowroute Inc., the leading provider of advanced calling and messaging services, today announced the availability of a new, commissioned industry report by Frost & Sullivan entitled, “Unshackling the Power of SIP Trunking” that describes a fundamental change in business communications away from limited legacy telecom services and toward a new breed of SIP trunking service providers that are fast displacing incumbent voice carriers.

According to the report, VoIP and SIP trunking services are on pace to displace legacy telecommunications services as the de-facto links from businesses to the public switched telephone network (PSTN). Further, Frost & Sullivan finds that North American SIP trunking services have over $3.56 billion in estimated annual revenue and are expected to grow at a 21.2 percent compound annual growth rate (CAGR) through 2020 based on previous analysis from 2013.

This evolution is being driven partially by the cost savings that IP-based services can provide over legacy telecommunications services, but more so out of the extended control and flexibility that VoIP and SIP trunking offer businesses, as well as greater speed and efficiencies to provision new services. This approach differs significantly from a model that has historically been “provider-centric” rather than customer-focused.

“SIP trunking effectively creates a new set of paradigms in business communications services,” said Michael Brandenburg, industry analyst at Frost & Sullivan. “The defining distinctions that SIP trunking services have over legacy telephony services are in the unprecedented levels of flexibility, scalability, and control that enterprises can have over their communications infrastructure. Businesses, third-party developers, and cloud application providers can now choose a level of management and control that meets their specific needs, which was simply never before possible with legacy voice carriers.”

Flowroute’s SIP trunking platform connects developers and enterprises to the PSTN, through the Flowroute portal and API, enabling them to integrate calling and messaging capabilities into new and existing applications and services.

“We’re adding new developers every day who are looking for an easy way to integrate calling and messaging into their apps and services in a quick, flexible and cost-effective manner,” said Bayan Towfiq, co-founder and CEO of Flowroute. “By providing developers direct access to carrier resources, we will begin to see a re-inspired telecommunications industry that is delivering powerful user experiences. To do this developers require unparalleled performance, transparency and control of their calling and messaging capabilities.”

Frost & Sullivan’s “Unshackling the Power of SIP Trunking” report can be downloaded for free here.

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