Best Rate vs Best Cost for SIP Dialer Traffic
When shopping & comparing SIP providers for Dialer Traffic the temptation is the strongest to look for the lowest cost provider based on the per minute rate only and that is because people have been conditioned for years by most Telecom Providers to buy based on their best long distance rate and it’s easy to let slip underneath the radar other hidden costs & soft costs. So let’s look underneath the hood at some examples to truly find the bottom line best option for your SIP Dialer long distance. If you were to compare SIP carriers side by side and the per minute rates are on par with each other then that leaves you with who is good, who is better & who is best. A good rate would be a competitive rate plus the standard FUSF fees, any taxes & administrative fees. A better rate would be a competitive rate plus the standard FUSF fees and nothing else. Many SIP providers have designed their networks in such a way that they only have to charge FUSF fees. The best rate would be a competitive rate and no FUSF fees at all. There are some SIP providers who bundle in the FUSF fees and if the rate is equal to the others then you come out ahead with this kind of offering. You might be asking what are the FUSF fees and for the last 4th of 2012 they were 17.4% and the 1st quarter of 2013 they have dropped to 16.1%. Even though it does change each quarter the variance is usually within 1-2 %. We’ve looked at hidden costs already above such as administrative fees and taxes because SIP is an IP-based form of communication you shouldn’t have to pay the same taxes as traditional Telecom services, but some SIP providers still do charge other taxes. The last component of shopping and comparing SIP and VOIP Dialer traffic is soft costs. Soft costs in the SIP and VOIP carrier world for Dialer traffic can entail many things such as bill rounding, 503 call rejects, congestion, low ASR, and a variety of other potential soft costs. If Profits are your most concern to your bottom line then getting an offer of what appears to be the lowest rate for your SIP or VOIP Dialer traffic is not always your best option. Whether you are selling Alarm Services or Vacation packages and your per Sale Profit is $50.00 or $200.00 a rate for example of .0075/minute from one SIP Carrier might be a lot more costly than another SIP Carrier at .009/minute or even .01/minute if the Hidden Costs and Soft Costs from your current carrier is costing you more to the bottom line. For a Free Analysis & Evaluation please call us @ our Toll Free Number 1-888-632-4228 or if you would like to receive our Blogs please click this link.