Least Cost Routing Optimization

LCR (Least Cost Routing) is a critical aspect of telecom business operations, especially in the context of managing call routing and minimizing costs associated with the interconnection and termination fees.
Least Cost Routing (LCR) is a telecom routing strategy that selects the most cost effective path for routing calls from the originator to the recipient, based in predefined criteria such as destination, time of day, quality of service and current rates offered by different carriers.

LCR Optimization Objectives

Cost reduction โ€“ minimize call termination costs by selecting the most cost-effective route for call routing

Profit maximization โ€“ LCR optimization helps telecom operators maximize profitability by reducing expenses associated with call termination and interconnection fees, while maintaining competitive pricing for customers.

Quality of service improvement โ€“ LCR optimization seeks to balance cost considerations with quality of servicerequirements, ensuring that selected routes meet the desired performance and reliability standards.

LCR Optimization Strategies

ABS platform calculates your routing performance/yield. We evaluate the LCR overall performance by calculating how much of your traffic is not routed through the optimal routing path and what are the cost penalties. We perform extended analysis per traffic type and vendor and provide routing optimization suggestions. >We find LCR configuration issues and bottlenecks:
  • Errors on setting up routing paths and loading vendor rates
  • Carriers with limited CPS that should take more traffic
  • Identifies poor performance vendors within your LCR.

LCR Performance

ABS handles the rate deck management. We track and evaluate the rates offered by different carriers for routing calls to various destinations.
We monitor and analyze the performance of your LCR to identify routing issues and opportunities for further optimization and refinement.

LCR Traffic Analysis

ABS calculated and recommends disputable amounts to vendors. We reconcile LCR output traffic (calls and minutes) against vendor CDRs, analyze and determine cost penalties from:
  • Minutes discrepancies
  • Call duration discrepancies
  • Rounding discrepancies
  • Inaccurate rating discrepancies
We monitor and analyze the short calls volumes and calculate the call holding penalties.