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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 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 service provider 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.

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.