Tuesday, August 13, 2019

Least cost Routing and its relation to VoIP




Least Cost Routing

The process of Call Routing is important in telecommunication. It determines the route which the call follows or are placed in queues. 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.
Call routing helps to prevent “lost calls”. Thereby saving revenues through optimising the cost of human resource. Least Cost Routing is a type of call routing that determines the least expensive way to route telephonic calls.
Considering both inbound and outbound traffic, the Least Cost Routing analyses selects and directs the traffic. This process has helped the telephone services to cut down costs for both individual and commercial users.

Routing in VoIP 

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.
In VoIP technology, the Least-cost Routing helps in the selection of the terminating gateway. The Least Cost Routing process selects the most cost-effective. Thereby resulting in huge profit margins.

Softswitch and LCR

The present-day Softswitch has the feature of Least cost routing inbuilt in it. 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.
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 Least Cost Routing

For Commercial users, LCR helps to provide a better quality VoIP Service. And in addition to this, it helps to reduce the VoIP billing to a minimum through LCR traffic route optimisation.
And as for individual users, due to LCR, the VoIP Service charges become nominal and affordable.

For more information on Least Cost Routing and VoIP Services, check here: Significance of Least Cost Routing in VoIP Industry

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