Resources For You

  1. 5 Essential Marketing Strategies for VoIP Businesses

    5 Essential Marketing Strategies for VoIP Businesses

  2. 5 Technologies Set to Revolutionise Webphones

    5 Technologies Set to Revolutionise Webphones

  3. 5 Unique Types of VoIP Gateways Explained!

    5 Unique Types of VoIP Gateways Explained!

  4. 5 Ways a Cloud PBX System Benefits Remote Work

    5 Ways a Cloud PBX System Benefits Remote Work

  5. 5 Ways SBCs Facilitate Unified Communications as a Service

    5 Ways SBCs Facilitate Unified Communications as a Service

  6. 5 Ways to Optimise ASR To Grow Profitability

    5 Ways to Optimise ASR To Grow Profitability

  7. 7 Additional Important Components of a VoIP Carrier Network Explained

    7 Additional Important Components of a VoIP Carrier Network Explained

  8. 7 Important Factors to Consider When Implementing LCR

    7 Important Factors to Consider When Implementing LCR

  9. 7 Ways to Optimize AHT

    7 Ways to Optimize AHT

  10. 9 Key Functions of an SBC Explained

    9 Key Functions of an SBC Explained

  11. 10 Factors to Consider While Choosing a Webphone

    10 Factors to Consider While Choosing a Webphone

  12. 10 Important Components of a VoIP Carrier Network Explained

    10 Important Components of a VoIP Carrier Network Explained

  13. 10-Point Security Checklist for VoIP Carriers

    10-Point Security Checklist for VoIP Carriers

  14. 10 Tips For Effective Implementation of LCR

    10 Tips For Effective Implementation of LCR

  15. 10 Webphone Features that Benefit Your Business

    10 Webphone Features that Benefit Your Business

  16. An Out of the Box Telecoms Network

    An Out of the Box Telecoms Network

  17. Are Call Centers Still Relevant in 2023?

    Are Call Centers Still Relevant in 2023?

  18. Automated Dialler vs Manual Dialler - Knowing the 7 Key Differences

    Automated Dialler vs Manual Dialler - Knowing the 7 Key Differences

  19. Call Center vs Contact Center - Understanding the Differences

    Call Center vs Contact Center - Understanding the Differences

  20. Choosing SIP over TCP,TLS and UDP in 2022

    Choosing SIP over TCP,TLS and UDP in 2022

  21. Class 4 Softswitch vs Class 5 Softswitch - Understanding the Difference

    Class 4 Softswitch vs Class 5 Softswitch - Understanding the Difference

  22. Combatting Covid-19 with Carrier-Grade Communications Solutions to Help Users Work Remotely

    Combatting Covid-19 with Carrier-Grade Communications Solutions to Help Users Work Remotely

  23. Comprehensive Cloud Softswitch Documentation

    Comprehensive Cloud Softswitch Documentation

  24. ConnexCS expands AnyEdge SIP Load Balancer to India

    ConnexCS expands AnyEdge SIP Load Balancer to India

  25. ConnexCS for Africa

    ConnexCS for Africa

  26. ConnexCS WebPhone SDK Connector

    ConnexCS WebPhone SDK Connector

  27. Discover the Different Types of NAT: An Essential Guide for Network Administrators

    Discover the Different Types of NAT: An Essential Guide for Network Administrators

  28. Discussing the Future and Top 9 Benefits of WebRTC

    Discussing the Future and Top 9 Benefits of WebRTC

  29. DNO And DNC Lists - Everything Carriers Should Know

    DNO And DNC Lists - Everything Carriers Should Know

  30. Email and SMS Alerts

    Email and SMS Alerts

  31. Employers' Guide to Winning at Remote Work

    Employers' Guide to Winning at Remote Work

  32. Exploring the Top 10 Types of Web Phones in 2023!

    Exploring the Top 10 Types of Web Phones in 2023!

  33. False Answer Supervision Detection - The Ultimate Tool for Preventing VoIP Fraud

    False Answer Supervision Detection - The Ultimate Tool for Preventing VoIP Fraud

  34. Far-End NAT Traversal - An In-Depth Guide

    Far-End NAT Traversal - An In-Depth Guide

  35. Feature Releases for June 2024

    Feature Releases for June 2024

  36. From Cost Savings to Mobility - 15 Benefits of Web Phones for Businesses

    From Cost Savings to Mobility - 15 Benefits of Web Phones for Businesses

  37. Get Your FCC Registration Number in 5 Easy Steps!

    Get Your FCC Registration Number in 5 Easy Steps!

  38. How to Build Your API on ConnexCS

    How to Build Your API on ConnexCS

  39. How to Build Your Own Dialer (BYOD) – Part 1

    How to Build Your Own Dialer (BYOD) – Part 1

  40. How to Establish a VoIP Interconnect in 10 Easy Steps

    How to Establish a VoIP Interconnect in 10 Easy Steps

  41. How to Get Operating Company Number (OCN) in 4 Easy Steps

    How to Get Operating Company Number (OCN) in 4 Easy Steps

  42. How to Identify Robocall Scam Traffic - A Comprehensive Guide for Telecom and VoIP Operators

    How to Identify Robocall Scam Traffic - A Comprehensive Guide for Telecom and VoIP Operators

  43. How to Improve CX? Ensure your Call Center Agents are Happy!

    How to Improve CX? Ensure your Call Center Agents are Happy!

  44. How to Prepare for a VoIP Network Security Audit

    How to Prepare for a VoIP Network Security Audit

  45. How to Properly Prepare for Setting up a VoIP Interconnect

    How to Properly Prepare for Setting up a VoIP Interconnect

  46. How to Register for the Robocall Mitigation Database: A step-by-step guide!

    How to Register for the Robocall Mitigation Database: A step-by-step guide!

  47. How to Successfully Implement LCR is 5 Easy Steps

    How to Successfully Implement LCR is 5 Easy Steps

  48. How Using Web Phones Can Benefit These 10 Industries?

    How Using Web Phones Can Benefit These 10 Industries?

  49. Importance of Balancing Cost Minimization and Reliable Call Quality when implementing LCR

    Importance of Balancing Cost Minimization and Reliable Call Quality when implementing LCR

  50. Introducing ConnexCS WebPhone

    Introducing ConnexCS WebPhone

  51. Introducing ConneXML - The Best TwiML Alternative

    Introducing ConneXML - The Best TwiML Alternative

  52. Introducing Smart CLI Select - An Effective Way to Improve your ASR

    Introducing Smart CLI Select - An Effective Way to Improve your ASR

  53. LTE vs VoLTE: Diving Into The Differences

    LTE vs VoLTE: Diving Into The Differences

  54. Operating Company Numbers (OCN) - Understanding Function, Importance and Relevance

    Operating Company Numbers (OCN) - Understanding Function, Importance and Relevance

  55. Populating Our Support Area With Cloud Softswitch Video Guides

    Populating Our Support Area With Cloud Softswitch Video Guides

  56. Predictive Dialler vs Progressive Dialler - Understanding the Differences

    Predictive Dialler vs Progressive Dialler - Understanding the Differences

  57. Preview Dialler vs Power Dialler - Understanding Top 5 Differences

    Preview Dialler vs Power Dialler - Understanding Top 5 Differences

  58. Rate Card Profit Assurance

    Rate Card Profit Assurance

  59. Redundant Redundancies (Backups of backups)

    Redundant Redundancies (Backups of backups)

  60. Revolutionise Your Outbound Calls - 8 Types of VoIP Diallers Explained

    Revolutionise Your Outbound Calls - 8 Types of VoIP Diallers Explained

  61. Scalability – Grow at Speeds That Suit You

    Scalability – Grow at Speeds That Suit You

  62. ScriptForge – Javascript Routing

    ScriptForge – Javascript Routing

  63. Simplifiying our Softswitch Pricing

    Simplifiying our Softswitch Pricing

  64. SIP 101 - The Best Guide of 2022

    SIP 101 - The Best Guide of 2022

  65. The 3CX Supply Chain Attack - Understanding Everything That Happened

    The 3CX Supply Chain Attack - Understanding Everything That Happened

  66. The 5 Best Strategies for Mitigating Robocall Scams

    The 5 Best Strategies for Mitigating Robocall Scams

  67. The Anatomy of Robocall Scams

    The Anatomy of Robocall Scams

  68. The Art of Cost Optimization - Least Cost Routing and Its 7 Benefits

    The Art of Cost Optimization - Least Cost Routing and Its 7 Benefits

  69. The Best Multi-POP Cloudswitch

    The Best Multi-POP Cloudswitch

  70. The Essential Guide to Business Continuity Plans for VoIP Carriers

    The Essential Guide to Business Continuity Plans for VoIP Carriers

  71. The Essential Guide to Implementing STIR/SHAKEN

    The Essential Guide to Implementing STIR/SHAKEN

  72. The Ultimate Guide to STIR/SHAKEN

    The Ultimate Guide to STIR/SHAKEN

  73. Timeout Protections (SIP Ping, SST)

    Timeout Protections (SIP Ping, SST)

  74. TLS and 2FA Security on the ConnexCS Platform

    TLS and 2FA Security on the ConnexCS Platform

  75. Top 5 Alternative Marketing Strategies for VoIP Businesses

    Top 5 Alternative Marketing Strategies for VoIP Businesses

  76. Top 5 Call Center Challenges and How To Overcome Them

    Top 5 Call Center Challenges and How To Overcome Them

  77. Top 5 Important Types of VoIP Gateways Explained

    Top 5 Important Types of VoIP Gateways Explained

  78. Top 7 Strategies For Ensuring Call Quality While Minimizing Costs with LCR

    Top 7 Strategies For Ensuring Call Quality While Minimizing Costs with LCR

  79. Top 9 Indicators that Help You Identify a Bad Carrier

    Top 9 Indicators that Help You Identify a Bad Carrier

  80. Top 10 Points of Differences Between a Traditional and VoIP Carrier

    Top 10 Points of Differences Between a Traditional and VoIP Carrier

  81. Top 10 Types of Robocall Scams Explained!

    Top 10 Types of Robocall Scams Explained!

  82. Top 10 VoIP Vulnerabilities You Must Know About

    Top 10 VoIP Vulnerabilities You Must Know About

  83. Understanding Global RTP Servers (Lowest Latency Possible, High Availability)

    Understanding Global RTP Servers (Lowest Latency Possible, High Availability)

  84. Understanding Network Address Translation (NAT) - A Beginner's Guide

    Understanding Network Address Translation (NAT) - A Beginner's Guide

  85. Understanding the 9 Key Objectives of a VoIP Network Security Audit

    Understanding the 9 Key Objectives of a VoIP Network Security Audit

  86. Understanding the Complete Scope of a VoIP Network Security Audit

    Understanding the Complete Scope of a VoIP Network Security Audit

  87. Understanding the Crucial Role of Session Border Controllers in Carrier-Grade VoIP Networks

    Understanding the Crucial Role of Session Border Controllers in Carrier-Grade VoIP Networks

  88. Understanding VoIP Anycast Load Balancing

    Understanding VoIP Anycast Load Balancing

  89. Understanding What a PBX System is and How it Benefits Your Business

    Understanding What a PBX System is and How it Benefits Your Business

  90. VoIP Carrier Network Components - Understanding Session Border Controllers

    VoIP Carrier Network Components - Understanding Session Border Controllers

  91. VoIP Carrier Network Security - How to Conduct Security Audit?

    VoIP Carrier Network Security - How to Conduct Security Audit?

  92. VoIP Carrier's Ultimate Guide to Cleaning Up Their Traffic

    VoIP Carrier's Ultimate Guide to Cleaning Up Their Traffic

  93. VoIP Interconnects - Learning How VoIP Carrier Connect and Exchange Traffic

    VoIP Interconnects - Learning How VoIP Carrier Connect and Exchange Traffic

  94. VoLTE - An Evolution in Voice Communication

    VoLTE - An Evolution in Voice Communication

  95. WebPones Explained: Understanding Web-Based Telephonic Communication

    WebPones Explained: Understanding Web-Based Telephonic Communication

  96. WebRTC 101 - The Best Guide for Beginners

    WebRTC 101 - The Best Guide for Beginners

  97. What Are SIP Traces - A Beginners Guide

    What Are SIP Traces - A Beginners Guide

  98. What Are The Top 10 Essential Call Center KPIs?

    What Are The Top 10 Essential Call Center KPIs?

  99. What Are VoIP Gateways and How Do They Work? A Comprehensive Guide

    What Are VoIP Gateways and How Do They Work? A Comprehensive Guide

  100. What is a Contact Center and Why Does Your Business Need One?

    What is a Contact Center and Why Does Your Business Need One?

  101. What is Robocall Mitigation Database? A Guide for Carriers and VoIP Operators

    What is Robocall Mitigation Database? A Guide for Carriers and VoIP Operators

How to Successfully Implement LCR is 5 Easy Steps

The pursuit of cost reduction has always been important for all businesses. While it is not the primary choice when it comes to growing profit margins, it is still the secondary and an essential way of achieving profit maximization.

The VoIP Industry stands to make the most gains through cost optimizations as the fixed cost component is not significant in this line of work.

This means if you’re smart with your operational expenses, you can grow your profits significantly. And how do you achieve this cost optimization? There are plenty of options but a prime candidate among these is Least Cost Routing.

We went through its basics and the factors you need to consider when implementing it. In this blog I shall guide you through a step by step process of implementing LCR.

Let’s get started then!

Steps involved in Implementing Least Cost Routing

Implementing Least Cost Routing (LCR) in a VoIP (Voice over Internet Protocol) environment involves several steps to ensure efficient and cost-effective call routing.

Here are the key steps involved in implementing LCR:

Step 1: Assessing Your VoIP Infrastructure

Assessing Your VoIP Infrastructure

Implementing LCR isn't as easy as flicking a switch with most communication platforms. With ConnexCS you can surely do this effortlessly!

Your LCR implementation should start off with assessing your VoIP infrastructure. This step involves evaluating the various aspects and components of your current VoIP network.

Network architecture, call traffic patterns and volumes, performance and reliability of carriers are some of the important things you look into.

We can break down this process in the following sub-steps -

Evaluate Your Current VoIP Network Architecture

In this sub-step, you need to review and assess your existing VoIP network setup. Consider the network topology, including routers, switches, gateways, and firewalls.

Evaluate the overall network capacity and scalability to handle increased call traffic. Identify any existing Quality of Service (QoS) mechanisms in place, which can affect call quality.

Analyze Call Traffic Patterns and Volumes

Here you focus on understanding the call patterns and volumes in your VoIP system. Analyze historical call data to identify patterns, such as peak usage periods, frequently dialed destinations, and call durations.

This analysis provides insights into the specific call routes that are in high demand and can help optimize cost savings through LCR.

Assess The Performance and Reliability of Carriers

Evaluating the performance and reliability of carriers is essential to ensure smooth LCR implementation. Assess the carriers and service providers you are currently using for VoIP calls.

Consider their track record, call completion rates, call quality, and customer reviews. This assessment helps in selecting carriers that offer stable and reliable routes for your LCR strategy.

Conducting a thorough assessment of your VoIP infrastructure and traffic, you gain a comprehensive understanding of your VoIP operations. This assessment will serve as the foundation for implementing LCR properly.

Step 2: Analyzing Call Costs and Routes

Analyzing Call Costs and Routes

Here is where the real work begins. Step 2. Once you have a good understanding of your VoIP operations, you can begin looking at the calling costs and routes.

You shall be required to identify all available routes from different carriers. Once all routes have been identified, calculate and make a note of the calling costs with each. Post that you can assess the call quality of that route.

Here’s a more detailed breakdown of the process.

Identify Available Routes from Different Carriers

Here you need to research and identify the routes offered by various carriers and service providers. Consider the carriers' coverage areas and the destinations they support. Thus, you will have a list of available routes that can be utilized for call routing.

Calculate The Cost Factors for Each Route

Here you start by finding out how much each route costs you in total. There can be multiple costs associated with a route besides the calling cost.

These additional costs include setup charges, monthly subscriptions, and any additional fees or minimum usage requirements.

Next step has you comparing routes serving the same destinations. This will help you identify and create a tiered list of most cost effective routes for each destination.

Evaluate Call Quality Metrics Associated with Each Route

Costs aren't your only consideration when implementing Least Cost Routing. Assessing the call quality metrics associated with each route is crucial for maintaining satisfactory voice communication.

Evaluate parameters such as latency, jitter, packet loss, and voice clarity for each route. Analyze call quality reports, customer feedback, and carrier performance to ensure that the selected routes meet the desired quality standards.

There’s other factors too that you should consider then implementing least cost routing. Calling costs and call quality will still serve as primary considerations.

Step 3: Selecting the LCR Strategy

Selecting the LCR Strategy

The thing about LCR is that you can implement it in different ways. There are different LCR strategies that achieve different objectives. Before we explore those strategies, we will take a look at how you should determine the best strategy for your operations.

Let’s get into the details of it with the following sub-steps.

Determine The Most Suitable LCR Strategy for Your Needs

List out all your business objectives and then consider what each LCR strategy accomplishes. This should help you zero in on an LCR strategy that delivers the exact results that help you accomplish your business objectives.

Factors to consider here include the size of your organization, call traffic patterns, cost-saving goals, and business priorities. Common LCR strategies include static LCR, dynamic LCR, and quality-based routing.

Consider Factors Like Call Volume, Destination, and Cost

Take into account the call volume and patterns in your organization. Analyze which destinations are frequently dialed and the associated call costs.

Consider the balance between cost optimization and call quality to ensure an effective LCR strategy. It's important to strike a balance that maximizes savings without compromising call quality.

Analyze Routing Algorithms and Their Suitability

Evaluate different routing algorithms that can be employed for LCR implementation. Weighted least cost routing, quality-based routing, and dynamic route selection are some common algorithms to consider.

Assess the strengths and limitations of each algorithm and determine which one aligns best with your specific needs and goals.

Now that you know what all you need to consider to choose an LCR strategy, we’ll take a slight detour and cover your options in terms of LCR strategies too!

Least Cost Routing Strategies

Least Cost Routing Strategies

We will not get into the details of each Least Cost Routing Strategy in this blog. We will just explain them quickly so you can stay focused on the implementation bit for now.

Static Least Cost Routing

This strategy involves manually configuring fixed routes based on predetermined cost criteria. Calls are routed through specific carriers or routes that offer the lowest cost for each destination.

Static LCR is simple to set up but requires regular updates to ensure cost optimization as carrier rates change.

Dynamic Least Cost Routing

Dynamic LCR dynamically selects the least expensive route for each call in real-time based on current carrier rates. It uses a routing algorithm to analyze call cost factors and selects the most cost-effective route at the time of the call. Dynamic LCR provides flexibility and adaptability to changing carrier rates.

Quality-Based Routing

Quality-based routing prioritizes call quality metrics over cost. This strategy selects the route with the best call quality parameters, such as low latency, minimal jitter, and high voice clarity, even if it may not be the cheapest option. Quality-based routing ensures optimal call quality but may not always result in the lowest costs.

Hybrid Least Cost Routing

Hybrid LCR combines elements of static and dynamic LCR strategies. It allows for a mix of predefined static routes and dynamic routing based on current cost factors.

Hybrid LCR offers the advantage of stability and control provided by static routing while also incorporating flexibility in dynamic LCR routing.

Profit Margin Routing

Profit margin routing takes into account not only the cost factors but also the profit margins associated with each route.

It considers the balance between cost and revenue generation. By selecting routes that offer a suitable profit margin, it optimizes both costs and profitability of each call.

Combined with what we have learned so far, you will be able to make an informed decision about which LCR routing strategy to choose for your specific VoIP operations.

Now let’s get back to learning the steps of implementing Least Cost Routing.

Step 4: Configuring Your VoIP System for LCR

Configuring Your VoIP System for LCR

By this time you will have three important things ready with you for implementing LCR. First is the complete understanding of your VoIP operations, detailed costs and comparisons of all available routes and lastly, a suitable LCR strategy.

With this, you’re at the execution stage of LCR. This step will have you configuring the VoIP switch or PBX to implement LCR. How you configure your switch or PBX will depend upon your provider. Here’s an overview of the process.

Adjust the Settings of Your VoIP Switch or PBX

Modify the settings of your VoIP switch or Private Branch Exchange (PBX) to support LCR. You might have to access the admin settings on your switch or PBX to accomplish this or have your NOC perform this.

Ensure that the LCR functionality is enabled and properly configured in your VoIP system. Please note that not all VoIP Switches and PBX systems offer LCR.

Set Up Call Routing Rules Based On The Chosen LCR Strategy

Based on the selected LCR strategy (such as static LCR, dynamic LCR, or quality-based routing), set up call routing rules in your VoIP system.

Define the rules that determine which routes or carriers to prioritize for specific destinations or cost criteria. Configure routing parameters such as call duration, destination, cost thresholds, or quality metrics to guide the routing decisions.

Step 5: Testing and Validating LCR Implementation

Testing and Validating LCR Implementation

Turning LCR on isn't the end of things. You need to test your implementation to ensure everything works as planned. Thus, the final step of this process involves testing and validating the LCR implementation to ensure optimal performance.

This step includes conducting test calls to evaluate call quality and performance, monitoring call metrics, and fine-tuning LCR rules as necessary.

To make it easy to keep a track, here's a breakdown of the process.

Conduct Test Calls To Evaluate Call Quality And Performance

Perform test calls using different routes to assess the call quality and performance of each route. Evaluate parameters such as voice clarity, latency, jitter, and packet loss.

This testing helps identify any potential issues or discrepancies in call quality that need to be addressed.

Monitor Call Metrics And Analyze The Results

Continuously monitor and analyze call metrics such as call duration, call completion rates, and audio quality. Utilize call monitoring tools or software that provide detailed insights into call performance.

Monitor factors like cost savings achieved through LCR, call quality improvements, and any deviations from expected outcomes.

Fine-Tune And Optimize LCR Rules If Necessary

Based on the analysis of test calls and call metrics, make adjustments and optimizations to the LCR rules and configurations.

Fine-tune the routing parameters, adjust cost thresholds, or refine routing algorithms to enhance the effectiveness of LCR implementation. This iterative process ensures that LCR rules are continually optimized for improved cost savings and call quality.

Testing and validating the LCR implementation is crucial to ensure that it aligns with the desired goals of cost optimization and call quality improvement.

Now that should help you get started with LCR!

Final Thoughts

Least cost routing is the need of the hour in the VoIP industry. Competition will pave the way to a better connected world. Lowering the cost barrier to entry into VoIP communication will make communication accessible to more customers.

So the benefits are quite clear. Better profits, better quality of communication and more customers for everyone in the VoIP industry. There’s other benefits specific to VoIP Carriers too which we covered in our other blog. Make sure you have a glance at it.

If you think implementing LCR might be tedious, you should give ConnexCS a try. You’ll be surprised to see how effortless it is with ConnexCS to grow revenue and profits!