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Why Least Cost Routing Is Essential for VoIP Service Providers?

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  • February 5, 2019

The backbone of any VoIP business is its Softswitches – Class 4 and Class 5 to be exact. The Class 5 softswitch serves the retail sector of VoIP solutions, enabling clients to use softphones, calling cards, or other devices for efficient VoIP service. In contrast, the Class 4 softswitch is designed for bulk operations, such as exchange-to-exchange functions, which are primarily used by telecommunications carriers

Both the classes of softswitch have some shared features. One of the most important shared features is intelligent call routing otherwise known as LCR (or Least Cost Routing). The LCR feature plays a vital role in managing overhead costs for VoIP service providers, enabling them to offer telecom services at minimal operational expenses.

A Brief Insight Into Why LCR Is Important:

To grasp the significance of the LCR feature in the VoIP industry, understanding its workings is essential. The overall costs of providing services to a customer are high for a VoIP service provider, especially, when the client is making international IP calls. This is where LCR comes into play, which helps service providers to minimize their overhead costs by many folds.

The LCR feature works only after the VoIP service providers configures their VoIP softswitch. Configuring the softswitch allows it to select termination gateways and network channels for fast data transmission at minimal costs. Essentially, the LCR feature optimizes outgoing traffic, providing top-notch VoIP solutions to clients while minimizing billing.

Implement Least Cost Routing and Reduce Your Telecom Expenses!

 

The Least Cost Routing can be carried both automatically as well as manually. Although business owners prefer to automate this routing operation since it is an inbuilt feature of a softswitch. Remember, call costs depend on LCR feature configuration. The effects are visible on both ends, i.e. the service provider and its clients. Properly configuring the softswitch based on business goals is key to rapid success as a VoIP service provider.

Be sure to get in touch with us so that you have access to LCR and the most prominent VoIP billing solutions that are suitable for your business.