SIP Trunking / General

Consolidation Trends in Multi-location TDM Customers Moving to SIP Telephony Solutions

As voice solutions swing increasingly toward IP-based technologies, many businesses are transitioning from traditional Time-Division Multiplexing (TDM) systems to cloud-based Session Initiation Protocol (SIP) solutions.

More specifically, multi-location TDM customers are consolidating SIP telephony services with a single provider while taking advantage of other business benefits SIP solutions offer. In this blog, we’ll explore 5 reasons behind this trend to help you explore if a SIP telephony solution could be right for you.

  1. Reduced Complexity

    In multi-location TDM environments, each site usually has a different local service provider (LSP). This leads to a complex web of contracts, service-level agreements, and technical dependencies.

    “With SIP telephony, customers can streamline operations and simplify management by consolidating services for all sites under a single provider,” says Tanya Duck, Frontier Director of Product Management. “This leads to more efficient communication, standardized service offerings, and easier issue resolution, ultimately reducing operational complexity for the customer.”

  2. Cost Savings

    One of the biggest reasons to switch to SIP telephony is cost savings. TDM systems are expensive to maintain, especially with multiple service providers. Consolidating with a single SIP provider means organizations can negotiate better pricing and volume discounts for significant cost reductions.

    Additionally, SIP telephony eliminates the need for physical infrastructure at every site, further reducing operational expenses. “Our customers that transition to SIP solutions see an average savings up to 30-40% percent,” says Duck.

  3. Simplified Management & Support

    Multi-location TDM infrastructures require substantial management, maintenance, and support. But SIP telephony solutions are easier to manage when a customer could consolidate their disparate systems into a single IP based solution. This allows customers to use a single SIP provider by using the WAN to distribute their phone service rather than having services delivered to each individual address. Consolidating to a single SIP provider helps multi-location customers centralize management efforts, improving their ability to monitor and support their telephony services.

  4. Scalability and Flexibility

    As an organization’s location footprint changes, having a single SIP provider makes it easy to add or relocate sites. “SIP adds flexibility which is legacy TDM is not capable of, for example, you can port a telephone number across geographic territories. TDM did not allow this.” says Duck.

Multi-location TDM customers consolidating to a single SIP telephony provider is here to stay. As SIP solutions continue to evolve, this trend will continue as more businesses benefit from a robust yet flexible unified communication infrastructure.

Overall, transitioning to SIP telephony solutions is a solid strategy for multi-location TDM customers looking to modernize communications, streamline management, and meet their goals today and tomorrow.

Discover how Frontier SIP Trunking can benefit your business and get an estimate today.