Least Cost Routing is Your Key to Lowering Communications Costs

In the world of business, the ability to communicateOccasionally-although this is not very common-it just
effectively and efficiently with a wide variety ofso happens that a serious error is made by a given
people, organizations, customers, etc., is fundamental tocarrier in interpreting a price schedule, and a major
staying afloat in a competitive marketplace. In thewindow of opportunity is opened up for other carriers
absence of a robust communications platform, ato make good money and save their clients plenty at
business is inevitably destined to shrivel up and wilt-athe same time. In what is known as cherry picking
victim of its own inability to interact with other players.(which brings major savings to end users in certain
Yet any business owner or operator knows thatcircumstances), one carrier will consider a certain
communications costs can rack up at an impressivephone code range to be more expensive than another
pace, especially when frequent calls are being made tocarrier considers it, and hence the latter carrier can
foreign and/or mobile recipients. And, of course, inpass off calls to that range to the former carrier,
today's globalized world, calling folks overseas is partcharging their high rates while paying much lower rates.
and parcel of ordinary business activity and is mostThis is unusual, and is not really so much a risk as it is
certainly something that can not be extirpated froma fluke within the telecoms market.
the business agenda, at the same time, thanks to theImplementing a least cost routing (LCR) solution for
tremendous advances in mobile connectivity and theyour business telephone communications can either be
ability of workers to stay productive and plugged indone by an in-house (rarely) or carrier's (more normal)
from virtually anywhere, calling mobile destinations isspecialized LCR team, and separately it is possible to
also an absolute must within business activities,have automated LCR hardware and software installed
completely ineligible for being slashed from the budget.on site at your business premises that will do the
So, what's a business to do to guarantee that theyrouting all on its own. It is still much more common to
have a robust communications solution that doesn't digsee human LCR teams performing these functions,
too deeply into the bottom line?though the software path is becoming increasingly
The answer comes in the form of least cost routing,popular with time and seems likely to become a
the business solution par excellence for all kinds ofcommon feature of large businesses within the next
telephone communications. The larger the volume offew years. If a business does decide to go ahead with
your outbound phone traffic, and the more frequentlyLCR software installation, there are certain basic
your offices happen to be making calls to foreign andfunctions which need to be met and that should be
mobile recipients, the more you should be interested inkept in mind during the purchase. First of all, the
least cost routing. And what exactly is least costsoftware must be able to load and process tables of
routing, you ask yourself? Least cost routing is simple:phone code ranges and price schedules automatically
it's a solution for overly expensive telephone bills that isfrom a default source; furthermore, the software must
implemented (in a variety of ways, as will be seen) bybe able to compare dialing codes in the proper manner
finding a carrier with a route to the destination numberand convert the carriers' price schedule, which is
that is priced as low as possible (within certain qualityexpressed in terms of destination names, into a
and reliability parameters, to be configured as seen fitschedule expressed in terms of dialing codes.
by the business in question). In order to reallyAdditionally, the software must be able to measure call
understand least cost routing, however, it is importantquality parameters and determine which routes to go
first of all to come to a clearer understanding ofwith based on values stipulated during configuration
telecoms carriers, and to think of them not only as(provided by the business, or if necessary, upon
providers of a service but also as customers.recommendation by an expert). Finally, the software
That's right: though you pay your carrier for theirmust be able to gather and arrange the pertinent data
services, your carrier in turn will pay another carrier onand pass it along into the billing/invoice system.
the global telecom market for the use of certainThe possibilities with such software vary drastically,
routes. Essentially, it's a matter of different telecomsfrom the most basic systems that only include a few
carriers trading what are known as "terminationof these features to very expensive systems that
services," which refers to the final leg of a phone callcover them all and much more still; generally, and with
before reaching the recipient. One carrier may havegood reason, the cheaper the software the greater
routing options for a country or series of countries in,the complexity of the manual work which must be
say, the Far East, and will end up selling part or all ofdone to make the system roll properly, so beware of
those routes to another carrier, who in turn may turn"saving" money on cheap software in this regard.
around and sell them to another. This active tradingWith the increasing shift towards VOIP telephony
among telecoms carriers is what makes least costplatforms in business settings, least cost routing is
routing possible, and specifically minor discrepancies inbecoming ever more automated and easy to
price schedules (either due to human/machine error orimplement, and the hassle of dealing with various
simply as the result of varying valuations on behalf ofcarriers' bills can be eliminated thanks to the
these companies) allow for the margins in pricing thatconsolidation and arrangement of all costs via this new
make it possible for least cost routing to save akind of platform.
significant amount in monthly phone bills.