Significance of Least Cost Routing in VoIP Industry

Least Cost Routing

Least Cost Routing

Least Cost Routing is a call routing process. This process determines the least expensive way to route telephonic calls. In short, this is the path selection process.

This process works for both inbound and outbound traffic. It involves analysing and selecting the route and directing the traffic. And thereafter, chooses the most cost favourable and shortest way.

LCR works on call-by-call function. This has helped the telephone services to cut down costs. The process helps both private and commercial users.

The benefits of Least Cost Routing was high in long-distance or international calls. However, some recent factors are nullifying its importance. Those are the drop in overall call rates along with the introduction of flat rates.


What is Call Routing?

Call Routing System is also known as Automatic Call Distributor (ACD). ACD is a tool that route calls to individual agents or queues. However, this routing works on pre-set criteria.

Earlier the call routing service was separate hardware. But with gradual evolution, they are now integrated with the telephone system. And therefore are usually simple software.

Call routing helps to prevent “lost calls”. Thereby saving revenues through optimising the cost of human resource. Call routing also helps businesses to maintain 24-hour active support for customers.


Types of Call Routing

There are 3 types of Call routing. Businesses usually implement these for their communication process. All the 3 types direct the incoming call according to their function.

Here are the following types of call routing:

  • ACD-based routing: In ACD based routing, the longest waiting calls are directed to the longest waiting advisor. In the case of unavailability of the advisor, the calls are queued. From the queue, the next available person receives the call.
  • Priority-based routing: This call routing determines the call based on the importance of the caller. For example, if a company sets its clients as VIP and general, then the members of the VIP queue will be attended before the general members.
  • Skills-based routing: The requirement of the caller here affects the call routing process. To handle this incoming call, the special skilled longest waiting advisor is selected. In case the advisor is unavailable, the call is placed in a dedicated queue.


Intelligent Call Routing

This is an evolved version of the call routing process. The earlier versions of this process were crude.  The switchboard operators were the machines working for call routing.

Intelligent call routing is a refined form. It the form of routing uses software for the functioning. This software identifies the caller based on the call information and directs them accordingly.

The intelligent call routing is a very useful tool. It helps in customer services and the allocation of call centre resources. It further eliminates the time-consuming process of traditional routing.


Routing In VoIP

Call routing is an important part of VoIP Business. Routing in VoIP is similar to normal call routing. In VoIP routing, VoIP traffic transmission from one destination to the other takes place.

For a successful VoIP business routing effects a lot. It determines the call terminating capacity to different destinations. And in due process interconnection with various terminating providers take place.

One effective tip for VoIP Terminating business is opting for multiple termination provider even for a single destination. Termination providers and interconnections are key points for a VoIP Termination business.


VoIP Termination

The VoIP Termination business is also known as Wholesale VoIP Business. In this business bulk volume of VoIP, route transaction takes place. Terminating routes include A-Z destinations.

Wholesale VoIP business requires a bit more investment than retail VoIP Business. This is because of the wholesale nature of the business. VoIP Route, therefore, is an important component of this section.

For successful VoIP Termination, it’s better to get a good service provider. Wholesale VoIP Service Providers often help to set up the business. Along with this they also assist in further functioning.

To know more about Wholesale VoIP Termination check here: Wholesale VoIP Termination details


Least Cost Routing in VoIP

Least Cost Routing is crucial for VoIP Termination. As mentioned earlier, it is an advanced routing process. It helps in the selection of the terminating gateway.

Usually, there are several termination gateways for a single destination. The Least Cost Routing process selects the most cost-effective. Thereby resulting in huge profit margins.

Integration of the Least Cost Routing with the Softswitch results in the effective routing of calls. If any necessity to upgrade the voice quality arises, then it is possible to optimise the control panel of the Softswitch solution.

The changes made in the Softswitch solution will eventually lead to the termination gateway best suited for VoIP Termination.


Working of LCR

Setting up or creating routing tables earlier was manual work. This tedious process was time-consuming and at times erroneous.

Least Cost Routing is initiated after the creation of the routing table. The function of the routing table is to match the dialling codes of the telephone to the destination networks. The list of destination for the match is decided by the cost factor.

Present-day the whole process of routing is automatic. This is only possible through the use of Least Cost Routing software. Automation of the process results in fewer errors. In addition to this, it requires less time.


Softswitch & LCR

Least Cost Routing is an inbuilt feature available in modern-day Softswitch. A proper configuration of the LCR is necessary for it to function. In addition to this, the call cost also depends on the configuration level of the LCR.

To know more about Softswitch check here: Importance of Softswitch in VoIP Business

LCR is especially helpful for determining the costs of international calls. Softswitch from a reputed VoIP Service Provider will already have this inbuilt software. This, therefore, reduces any additional burden.

The reason behind the necessity for Softswitch configuration are:

  • It enables the Softswitch to easily select termination gateway and network elements.
  • This selection ensures faster data transmission at a minimal cost.
  • The proper configuration will boost the business and result in more profit generation


Benefits of LCR

Summarising, the Least Cost Routing is beneficial for both VoIP Service Provider and consumers.

Ways in which LCR benefits the Service Providers are:

  1. Provide a better quality VoIP Service
  2. Reduce the VoIP billing to a minimum through LCR traffic route optimisation

And for the consumers, the end product or the VoIP Service charges are nominal and affordable. The popularity of VoIP Service has grown considerably and continues doing so. And with features as LCR, the services are better than ever.

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