Least Cost Routing is Dead

No new news here, but we recently were made aware that there are still many, many, many companies viewing their voice routing processes and capabilities through the antiquated, arcane, limited and completely anachronistic lens of LEAST COST Routing. To us, that is completely insane and, even worse, bad business.  It is 2016. It’s been 20 years since the 1996 Telecommunications Act was passed, which served as the catalyst for the wave of innovation that has swept the telecommunications industry over the past two decades. So, for carriers to still be maintaining and employing the voice routing methods from pre-1996…well, you can imagine our shock and disbelief.

Employing this traditional Least Cost Routing as the main methodology to manage how a carrier routes voice calls across their network, is not good business.  Least Cost Routing doesn’t take into account the active network dynamics that are inherent in the IP transport layer that nearly every carrier in the world uses.  It ignores the associated cost and quality attributes that are changing dynamically in the network every minute, every day, every week and every month. Further, it hinders the financial performance of the company by eliminating cost reduction opportunities or by imposing an unnecessary workload on an organization to perform the LCR management tasks.  It’s the equivalent of going to a grocery store and having the cashier use a paper, pencil and an abacus to determine how much your groceries cost. There is a vast difference between traditional Least Cost Routing and today’s next gen Dynamic Routing & Rating platforms that carriers have available to them. If anyone reading this is still using traditional LCR, please contact us or anyone in our industry.  We have something to show you that will change the way you see the world.  Least Cost Routing is Dead.  LCR is Dead.  If you are still using the old Least Cost Routing methods then your business could wind up ….

Andrea Rona