Selling SIP Trunking InGate SIP Trunking and Unified Communications Summit February, 2011

Joel MaloffVice President Channel Development Phone.comwww.phone.comJmaloff @phone.com

Building Your Business with SIP Trunking and Unified Communications

InGate SIP Trunking and Unified Communications Summit

January, 20141IntroductionChannel Sales Partners can generate significant income selling SIP trunks and Unified CommunicationsThis session takes a sales and marketing perspective, and specifically, the view from the independent agent.

This presentation contains some material covered in more detail in the online program SIP Trunking for the Sales and Marketing Professional, available from The SIP School (www.thesipschool.com).

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Building Your Business OverviewSIP Trunks and UCChannel Sales OpportunitiesWhat to look for in a SIP Trunking, Hosted PBX, and/or Unified Communications Channel ProgramIdentifying YOUR SIP Trunking Sweet Spot and what to avoidInterpreting the customers Status QuoUncovering areas of added valueCreating a cost justification/ROI modelOvercoming ObjectionsClosing the SaleKeeping the Sale

3SIP Trunks and UCUnified communications includes mobility, presence, web conferencing, a variety of other solutions, AND voice communications via SIP trunks.SIP trunking is therefore a subset of the unified communications umbrella.

4SIP Trunks and UCUnified Communications can be multifaceted, complex and confusing to potential buyers.Thats bad for sales.By focusing on specific benefits and documented ROI, your chances for a sale go up.SIP trunking can provide the substantiation you need!5Channel Sales OpportunitiesSIP Trunking, Hosted PBX, and Unified Communications are young industries.Most service providers are less than five years old.Channel programs are only just now beginning for these services and the models vary widely.Channel Sales OpportunitiesWhat to look for in a service providerStrong existing reputationComprehensive suite of services that address YOUR marketplaceCompetitive pricingLow customer churn rateClear partner compensation programInteractive web-based tools for partnersChannel Sales OpportunitiesWhat to avoidOrganizations with a limited track record in these specific servicesBias towards specific technologiesOnly a Broadsoft-based service provider is worth considering.Base your decisions on demonstrable evidence rather than speculation.There are many excellent alternatives and no one technology has all of the answers in terms of features, quality, and cost effectiveness.The SIP Trunking Sweet SpotEach ITSP is different.What is your partners sweet spotNumber of concurrent calls?Number of locations?Minimum current telephone bill? Number of PRIs total and/or per location?

9The SIP Trunking Sweet SpotNumber of minutes per month?Incoming?Outgoing?Local, domestic long distance, international?Inbound Toll-free?Specific vertical industries?Specific geographies?

10The SIP Trunking Sweet SpotAs a sales organization, knowing who and where to target can be the difference in making your numbers or failing to perform.

11Interpreting the Status Quo

Reviewing an actual customer bill for cost savingsIdentifying areas of soft savings

12Finding Added ValueConsolidation of officesCreation of Virtual presenceDomesticInternational

13Cost Justification and ROIIt is easy to assert cost savings; it takes work to prove it.Hard cost savings come from three primary areas:Usage sensitive call chargesFixed price services (PRI, DSL, local exchange lines, et al) used for voice services

14Cost Justification and ROIFees and SurchargesEUCL The End User Common Line (EUCL) charge is a federally regulated monthly service charge applied to certain local voice service offerings.RCRF The Regulatory Cost Recovery Fee (RCRF) Imposed by some carriers on business and residential long distance customers used to recover costs associated with Federal regulatory fees imposed upon these carriers.Others

15Cost Justification and ROICalculating potential savingsUnderstand current costs by examining a current bill if possible.Try to make sure that it is a representative month and not an anomaly.Identify usage charges and their breakdown regarding local, domestic long distance, and international.Identify fixed monthly charges for PRIs, DSL, and surcharges.

16Cost Justification and ROISome vendors do offer ROI tools for SIP trunking.http://www.xo.com/forms/campaign/ExternalSales/ESIPCalcLP/index.aspx?ListSource=PressRelease071510Unfortunately, the level of detail may not be sufficient for you unless you are a salesperson for that company!17Cost Justification and ROIWhat are the challenges with overview ROI tools?Total Number of employees Minimum of 50Number of Physical LocationsMinimum of 5Percentage of Inter-company callingAsserted savings is 38%!What is missing from this picture?18Cost Justification and ROI

19Cost Justification and ROICalculating potential costsIdentify fixed monthly charges for PRIs, DSL, and surcharges.Calculate the number of SIP trunks (concurrent calls) and Internet bandwidth required using the spreadsheet on the next slide.20Cost Justification and ROI

21Cost Justification and ROICalculating potential savings and valueInclude all costs for all solutionsConsider surcharges and fees such as EUCL (Approximately $40 per PRI or T-1 monthly) and RCRF (Approximately 3.5% of all domestic and international calling charges)Most ITSPs do not include EUCL and RCRF fees.Show the monthly total costs, percent saved via SIP trunking, and the estimated annual savings.22Cost Justification and ROI

23Cost Justification and ROISimple tools provide simplistic answers; business is complex today!

If you want to deliver quality to your prospects, preparation is in order; they will welcome your expertise!24Overcoming ObjectionsConceptualInternet Telephony is here to stayAT&T asks the FCC to allow shut-down of their traditional PSTN services in favor of IP Telephony. the VoIP access and SIP trunking services market will continue to build on its downturn-defying 40.1 percent growth in user base and 22.3 percent growth in revenues in 2009. (North American VoIP Access and SIP Trunking Services Markets, Frost & Sullivan, April 2010)

25Overcoming ObjectionsTechnicalFinancialEmotional

26Closing the SaleASK FOR THE ORDER!!!Make it easy.Make it simple.Make it painless.

27Keeping the SaleMinimize churn!Keeping and growing existing customers is more valuable than new sales.The salespersons job is NOT done when the service agreement is signed.Ensure that service is delivered as sold and when promised.Maintain regular contact to avoid unexpected churn, expand existing services, obtain referrals, and solicit testimonials.

28ConclusionsSuccessfully selling SIP trunking, hosted PBX, and unified communications services requires a combination of good old fashioned sales skills and knowledge of the SIP trunking environment beyond just surface information and platitudes.Customers NEED these solutions you need to be able to help them make the buying decision from you!

29For More InformationJoel Maloff, Phone.com954-239-7243jmaloff@phone.com www.phone.com

The SIP Schoolwww.thesipschool.com 30Sheet1SIP Trunking Customer Usage Analysis

Type of Calls:# CallsDurationin MinutesAverage Call DurationCurrent Carrier ACurrent Carrier BCurrent Carrier CYOUR Cost/MinuteCarrier ATotalCarrier BTotalCarrier CTotalYOUR TotalDirect Dial Interstate68,247104,9531.54$0.0201$0.0500$0.0180$0.0140$2,110$5,248$1,889$1,469Direct Dial Intrastate1,4191,6931.19$0.0840$0.0490$0.0490$0.0140$142$83$83$24Toll-Free Interstate2,2574,7312.10$0.0201$0.0150$0.0180$0.0140$95$71$85$66Toll Free Canada (call from Canada)9872,3812.41$0.1950$0.0490$0.0490$0.0180$464$117$117$43

International from U.S.:United Kingdom3,2164,9001.52$0.0300$0.0300$0.0300$0.020$147$147$147$98Japan1,0681,7771.66$0.1381$0.0556$0.0400$0.045$245$99$71$80Hong Kong3104081.32$0.2100$0.0509$0.0600$0.040$86$21$24$16Singapore2102871.37$0.1400$0.0675$0.0400$0.036$40$19$11$10Brazil931381.48$0.1380$0.0503$0.0400$0.050$19$7$6$7Australia63961.52$0.2190$0.1520$0.0700$0.041$21$15$7$4Norway39391.00$0.2190$0.1363$0.0500$0.040$9$5$2$2

USAGE SUMMARY# CallsDurationin MinutesAverage Call DurationCarrier A TotalCarrier BTotalCarrier CTotalYOUR TotalTotal Direct Dial Domestic72,910113,7581.56$2,347$5,402$2,057$1,559Total International4,9997,6451.53$567$313$268$217Total Inbound Toll Free3,2447,1122.19$464$117$117$43

TOTAL MONTHLY USAGE 81,153128,5151.58MONTHLY COSTS$3,378$5,831$2,442$1,819PROJECTED ANNUAL USAGE 973,8361,542,180ANNUAL COSTS$40,536$69,972$29,306$21,830SIP Trunking Customer Fixed Cost Analysis

Dedicated CircuitsTypeBandwidthNumberNumber of Voice ChannelsMonthly $$Total MonthlyPRI1.5 mbps123$450.00$450T-11.5 mbps1CODEC Dependant$300.00$300E-12.048 mbps1300.0DSL512 kbps00.0SIP TrunksCODECBW per call (kbps)Concurrent CallsTotal BW Required (kbps)MRC Per SIP TrunkTotal MRCG.729507330$20.00$132G.711807528$20.00$132

Total Cost Comparison

Carrier ACarrier BCarrier CYOUR SIP Trunking

Monthly Recurring Line Charges$450$450$450$300Monthly Recurring SIP Trunk FeesN/AN/AN/A$132Average Monthly Usage Charges$3,378$5,831$2,442$1,819Average Monthly Surcharges and Fees$159$244$1260.0

TOTAL MONTHLY FEES$3,987$6,526$3,018$2,251Percent saved by SIP Trunking44%66%25%ANNUAL SAVINGS VIA SIP TRUNKING$20,826$51,292$9,203PRI and Data Line RequirementsCurrent Number of Concurrent Calls89600Current Number of Locations3Current Number of PRIs3Monthly Cost Per PRI$500Data Bandwidth Required (kbps)974Data T-1 Required1Cost Per Data T-1$350Bandwidth requirement FormulaTotal minutes per month/22 working days/8 hours/60 = number of concurrent minutes Number of Concurrent minutes X 80 kbps = Bandwidth required

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Sheet1SIP Trunking Customer Usage Analysis

Type of Calls:# CallsDurationin MinutesAverage Call DurationCurrent Carrier ACurrent Carrier BCurrent Carrier CYOUR Cost/MinuteCarrier ATotalCarrier BTotalCarrier CTotalYOUR TotalDirect Dial Interstate68,247104,9531.54$0.0201$0.0500$0.0180$0.0140$2,110$5,248$1,889$1,469Direct Dial Intrastate1,4191,6931.19$0.0840$0.0490$0.0490$0.0140$142$83$83$24Toll-Free Interstate2,2574,7312.10$0.0201$0.0150$0.0180$0.0140$95$71$85$66Toll Free Canada (call from Canada)9872,3812.41$0.1950$0.0490$0.0490$0.0180$464$117$117$43

International from U.S.:United Kingdom3,2164,9001.52$0.0300$0.0300$0.0300$0.020$147$147$147$98Japan1,0681,7771.66$0.1381$0.0556$0.0400$0.045$245$99$71$80Hong Kong3104081.32$0.2100$0.0509$0.0600$0.040$86$21$24$16Singapore2102871.37$0.1400$0.0675$0.0400$0.036$40$19$11$10Brazil931381.48$0.1380$0.0503$0.0400$0.050$19$7$6$7Australia63961.52$0.2190$0.1520$0.0700$0.041$21$15$7$4Norway39391.00$0.2190$0.1363$0.0500$0.040$9$5$2$2

USAGE SUMMARY# CallsDurationin MinutesAverage Call DurationCarrier A TotalCarrier BTotalCarrier CTotalYOUR TotalTotal Direct Dial Domestic72,910113,7581.56$2,347$5,402$2,057$1,559Total International4,9997,6451.53$567$313$268$217Total Inbound Toll Free3,2447,1122.19$464$117$117$43

TOTAL MONTHLY USAGE 81,153128,5151.58MONTHLY COSTS$3,378$5,831$2,442$1,819PROJECTED ANNUAL USAGE 973,8361,542,180ANNUAL COSTS$40,536$69,972$29,306$21,830SIP Trunking Customer Fixed Cost Analysis

Dedicated CircuitsTypeBandwidthNumberNumber of Voice ChannelsMonthly $$Total MonthlyPRI1.5 mbps123$450.00$450T-11.5 mbps1CODEC Dependant$300.00$300E-12.048 mbps1300.0DSL512 kbps00.0SIP TrunksCODECBW per call (kbps)Concurrent CallsTotal BW Required (kbps)MRC Per SIP TrunkTotal MRCG.729507330$20.00$132G.711807528$20.00$132

Total Cost Comparison

Carrier ACarrier BCarrier CYOUR SIP Trunking

Monthly Recurring Line Charges$450$450$450$300Monthly Recurring SIP Trunk FeesN/AN/AN/A$132Average Monthly Usage Charges$3,378$5,831$2,442$1,819Average Monthly Surcharges and Fees$159$244$1260.0

TOTAL MONTHLY FEES$3,987$6,526$3,018$2,251Percent saved by SIP Trunking44%66%25%ANNUAL SAVINGS VIA SIP TRUNKING$20,826$51,292$9,203PRI and Data Line RequirementsCurrent Number of Concurrent Calls89600Current Number of Locations3Current Number of PRIs3Monthly Cost Per PRI$500Data Bandwidth Required (kbps)974Data T-1 Required1Cost Per Data T-1$350Bandwidth requirement FormulaTotal minutes per month/22 working days/8 hours/60 = number of concurrent minutes Number of Concurrent minutes X 80 kbps = Bandwidth required

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Sheet1SIP Trunking Customer Usage Analysis

Type of Calls:# CallsDurationin MinutesAverage Call DurationCurrent Carrier ACurrent Carrier BCurrent Carrier CYOUR Cost/MinuteCarrier ATotalCarrier BTotalCarrier CTotalYOUR TotalDirect Dial Interstate68,247104,9531.54$0.0201$0.0500$0.0180$0.0140$2,110$5,248$1,889$1,469Direct Dial Intrastate1,4191,6931.19$0.0840$0.0490$0.0490$0.0140$142$83$83$24Toll-Free Interstate2,2574,7312.10$0.0201$0.0150$0.0180$0.0140$95$71$85$66Toll Free Canada (call from Canada)9872,3812.41$0.1950$0.0490$0.0490$0.0180$464$117$117$43

International from U.S.:United Kingdom3,2164,9001.52$0.0300$0.0300$0.0300$0.020$147$147$147$98Japan1,0681,7771.66$0.1381$0.0556$0.0400$0.045$245$99$71$80Hong Kong3104081.32$0.2100$0.0509$0.0600$0.040$86$21$24$16Singapore2102871.37$0.1400$0.0675$0.0400$0.036$40$19$11$10Brazil931381.48$0.1380$0.0503$0.0400$0.050$19$7$6$7Australia63961.52$0.2190$0.1520$0.0700$0.041$21$15$7$4Norway39391.00$0.2190$0.1363$0.0500$0.040$9$5$2$2

USAGE SUMMARY# CallsDurationin MinutesAverage Call DurationCarrier A TotalCarrier BTotalCarrier CTotalYOUR TotalTotal Direct Dial Domestic72,910113,7581.56$2,347$5,402$2,057$1,559Total International4,9997,6451.53$567$313$268$217Total Inbound Toll Free3,2447,1122.19$464$117$117$43

TOTAL MONTHLY USAGE 81,153128,5151.58MONTHLY COSTS$3,378$5,831$2,442$1,819PROJECTED ANNUAL USAGE 973,8361,542,180ANNUAL COSTS$40,536$69,972$29,306$21,830SIP Trunking Customer Fixed Cost Analysis

Dedicated CircuitsTypeBandwidthNumberNumber of Voice ChannelsMonthly $$Total MonthlyPRI1.5 mbps123$450.00$450T-11.5 mbps1CODEC Dependant$300.00$300E-12.048 mbps1300.0DSL512 kbps00.0SIP TrunksCODECBW per call (kbps)Concurrent CallsTotal BW Required (kbps)MRC Per SIP TrunkTotal MRCG.729507330$20.00$132G.711807528$20.00$132

Total Cost Comparison

Carrier ACarrier BCarrier CYOUR SIP Trunking

Monthly Recurring Line Charges$450$450$450$300Monthly Recurring SIP Trunk FeesN/AN/AN/A$132Average Monthly Usage Charges$3,378$5,831$2,442$1,819Average Monthly Surcharges and Fees$159$244$1260.0

TOTAL MONTHLY FEES$3,987$6,526$3,018$2,251Percent saved by SIP Trunking44%66%25%ANNUAL SAVINGS VIA SIP TRUNKING$20,826$51,292$9,203PRI and Data Line RequirementsCurrent Number of Concurrent Calls89600Current Number of Locations3Current Number of PRIs3Monthly Cost Per PRI$500Data Bandwidth Required (kbps)974Data T-1 Required1Cost Per Data T-1$350Bandwidth requirement FormulaTotal minutes per month/22 working days/8 hours/60 = number of concurrent minutes Number of Concurrent minutes X 80 kbps = Bandwidth required

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