What is Least Cost Routing?

Least Cost Routing refers to whereby one finds ways to make phone calls less expensive or to charge less. Many telecommunication companies have found ways to lower their prices so as to accommodate many customers.

Least Cost Routing is made possible by creating a list of dial codes which are similar so as to make it less expensive when making the calls.

How Least Cost Routing Works 

The most common way of having low cost when making calls is transferring the calls to a switchboard.  This will make making calls much cheaper however this has its own limitations. This is so because most telecommunication platforms have a limited memory.

The limited memory will end up erasing data. Furthermore, having to use this method things may be slower which is a great disadvantage as real time calling always has to be fast and effective.

In addition to the above, another method of routing many things at once can be used. In this process one uses external devices to get real time data. In this process RAM is commonly used in gathering this data. 

When using RAM millions of data can be captured and stores more and faster. When one receives a call it automatically sends a routing signal to the NGN and the charges will be reduced automatically.

Routing Table Size

In routing these days seven digits are usually used on a basis on 1000 numbers. The dial code is now being matched with the destination code.

Portability Collection

There are 597 million ported telephone numbers around the world. The Trans Nexus company in North America report that 40% of calls are to ported telephone numbers. This leads to low routing cost.

The Solution

Optimized least cost routing requires software that can handle the complications of today’s VoIP industry. With Trans Nexus solutions, you can easily do the following:

In summation routing cost can be easily dealt with when using the right software’ and company. The Trans Nexus in North America is reported to be one of the companies with low cost routing.

The Effectiveness of Least Cost Routing

Least cost routing is an extremely effective strategy to help telecommunications providers save money. This made possible by lowering their cost. The strategy is derived in the name meaning routing calls via the least costly method. 

Sadly, it is also an extremely effective strategy to increase PDD and lower call quality. It is important to keep in mind though that simply routing calls to the cheapest vendor is not always the best option. In order to improve the call quality and thus the customer experience, it is important to route calls in a smart way to utilize the best vendors available.

All the above take time to go through with, hence the need to make sure you have good network connection and all the necessary resources before starting the process.

While it is almost impossible to predict potential outages or issues with a vendor, routing can be done in a smart way to eliminate some of the unnecessary pain points of telephone calls such as PDD and packet loss.