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Why Least Cost Routing Is Essential for VoIP Service Providers?

  • February 5, 2019

The backbone of any VoIP business is its Softswitches – Class 4 and Class 5 to be exact. The class 5 softswitch is used in the retail section of the VoIP solution provider, which can be used by its clients with softphones, calling cards or other devices to make the efficient use of VoIP services. On the other hand, Class 4 softswitch is ideal for bulk operations, i.e., for exchange to exchange operations, which is the primary service offered by telecommunication 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 is known for its role when it comes to managing the overhead costs of a VoIP service provider. When it comes to VoIP billing, the LCR helps a service provider to provide telecom services to their customers at minimal operational costs.

A Brief Insight Into Why LCR Is Important:

One needs to understand how the LCR feature works if they wish to get a better idea about the importance of the feature in the VoIP industry. 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 service provider configures their VoIP softswitch. Configuration of the softswitch enables the same to choose a termination gateway and the network channel that ensures fast transmission of data in minimal costs. To put it more simply, LCR feature is essential when a service provider wants to impart impeccable VoIP solution to the client base all the while keeping VoIP billing to a minimum by optimizing the course and direction of outgoing traffic.

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. One thing that needs to be kept in mind is that the call costs depend on how well the LCR feature is configured. The effects are visible on both ends, i.e. the service provider and its clients. What one can take away from the above information is that it is important to take the time needed to properly configure the softswitch as per the business goals if a VoIP service provider wants to make it big in no time.

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.