In the market today, most telephony users don’t think about the complicated process that must take place in order to complete one phone call. All they really care about is whether or not the call can be completed on the first attempt.
What is easily hidden is the complicated network of telephone exchanges and routes throughout the world that must exist to connect calls. With so much involved, least cost routing is a primary focus for operators as they want to be able to deliver that service for the lowest price possible.
As captured in this VoiParty (News - Alert) Success piece, cost is a primary factor when connecting calls between carriers, regions, countries and even callers. It is also a primary concern for consumers when they are selecting the right provider to satisfy their communications needs. And, with the level of competition in the marketplace, providers are constantly trying to lower their cost of doing business so they can pass these savings on to the customer in the form of more competitive rates.
To implement least cost routing, it means the provider must find the cheapest path through the maze of services, grids and exchanges to connect the call. For the most part, least cost routing is delivered automatically with software that is specifically designed to consider both cost and efficiency when determining the best route.
Service providers seeking to optimize least cost routing generally have hundreds of available routes to choose from when connecting long distance calls. Least cost routing can be set as an automated choice for capturing those calls for telecom providers seeking the route that offers the least cost overall. The important thing to note, however, is that cost is not always the most important factor – or at least not the only factor.
In some cases, providers have special arrangements with each other to use each other’s services. This helps to streamline the process of routing calls, whether it is the cheapest route or not. And, as some countries may have different regulations and even different possibilities, compared with U.S. carriers and services, it is important to know exactly how calls will be routed in such situations. Capacity is also a consideration as the service provider doesn’t want to send a call through a bottlenecked network.
As the number of phones increases at a rate faster than the number of people, least cost routing is gaining in importance. Service providers are under more pressure than ever before to deliver quality service and the clear call connection is a primary metric for performance measuring. As such, the provider is much more likely to secure optimal routing if least cost routing is unavailable to ensure the quality experience for the customer.
Susan J. Campbell is a contributing editor for TMCnet and has also written for eastbiz.com. To read more of Susan’s articles, please visit her columnist page.
Edited by Jaclyn Allard