It can then use this information to calculate the best route for any given call.Least Cost Routing, also known as LCR, is the process of calculating the best route for a call based on price and/or call quality.Dialplan – If you have only a couple different routes to choose from you might just hard-code the logic into your dialplan.In small installations, you might have only 2 carriers; 1 for domestic calls and 1 for international calls. Ultimately, providing the best quality at the lowest price.The importance of proper LCR is dependent upon the size of the installation. Choose the top 5 destinations and then shop around with 5-10 termination providers to see what pricing is available for those destinations. . If you are Post Cap for sale monitoring ASR (“Answer Seizure Rate”) or ACD (“Average Call Duration”) then you can also route calls based on quality. You can then use this new pricing to determine how much you could have saved by implementing an LCR. If you have multiple carriers offering you the same rate for a specific destination then you can configure your LCR to take the quality of the route into consideration during its calculation.An LCR system will allow you to import your carrier’s rate sheets and monitor call quality.In large installations, those fractions of a penny add up, and quickly.Stand-alone Device – Stand-alone LCR systems do one thing and one thing only; calculate call routes as quickly as possible.
As pricing between carriers might only differ fractions of a penny for the same destinations, LCR is all about volume. performance. As the call volume is relatively low, saving a few fractions of a penny here and there is less important and may not even warrant the effort required to configure and maintain an LCR system. Using your billing system’s LCR module offers a nice balance of cost vs.An easy way to determine how much you can save is to look at your ‘Minutes per Destination’ report for the previous 12 months. This scenario saves you from having to license a stand-alone system and also allows for more centralized administration. The purpose is to provide the best quality call at the lowest possible price. Implementing a proper LCR system can have a dramatic impact on your bottom line. Example: All domestic calls use RouteA, all international calls use RouteB. This simple comparison will give you an accurate depiction of how effective a least cost routing system could be to your bottom line. Although expensive, they can pay for themselves quickly if your call volume is high enough. If you are handling millions of minutes per day and you can save 10%+ in terminations fees by selectively routing your calls, it can easily save you hundreds of thousands of dollars in a single month.Advanced LCR systems can also take profit-margin protection, jurisdictional domestic, local number portability and mobile number portability into their calculation.Although least cost routing is primarily focused on cost savings, it can also affect the quality of service you provide to your customers.Effective implementation of an LCR will help you to be more efficient and ultimately more competitive. These systems typically run on dedicated hardware and are intended for large installations handling thousands of new calls per second.Billing System Module – Your billing system may implement LCR as one of its available modules.DTH Software, Inc is a provider of commercial voip billing systems. Version 5 introduces our Least Cost Routing module which allows real-time route calculation based on cost as well as quality. This allows you to route the call based on the best rate available to you, but also, based on the best quality route within those lower-cost routes. These items are not discussed in this article. This is very easy to implement but has the obvious limitations of only handling a very small number of routes and no ability to take call quality into account.The implementation of a least cost routing system can take on more than 1 form