Service Provider Success With Least Cost Routing

For many Fixed or Wireline Service Providers, a critical revenue stream continues to be the transport of Long Distance or International Calls. In order that such calls can be completed and revenue ensured, it is fundamental to be able to determine that calls are being completed successfully and to understand by whom those calls are completed.

Using metrics such as the Network Effectiveness Ratio (NER) enables Service Providers to determine call success rates excluding the effect of both subscriber and terminal behavior. For calls outbound to a partner Service Provider, near real-time indication of NER metrics can enable them to implement corrective action should failures be detected.

Read: Service Provider Blame: Does the Punishment Fit the Crime?

Such information assists in managing associated Service Level Agreements (SLAs), where Service Providers will bill each other for the volume of calls transiting or terminating in their network. Moreover, the information can be used to manage or determine where calls should be routed and when – a technique known as Least Cost Routing.

Least Cost Routing itself is not new, but Service Providers continue to demand tools and applications that allow successful management or implementation. For example, a Service Provider will interconnect with several partners in order to ensure service continuity should an issue with one or more partners occur. However, not all will necessarily offer or underwrite the same Quality of Service.

Read: Measuring Customer Experience from the Network Perspective

In addition, existing SLAs will be based on the volume of calls routed or completed at any one time. Through detailed and accurate the traffic analysis, Service Providers can look to combine both quality and volume related metrics with the relevant “cost to complete” SLA information. In addition, they can begin routing calls, at specific times of the day, to those interconnect partners offering lower cost/call completion tariffs, while still maintaining the required subscriber quality of service.

Least Cost Routing not only maintains existing revenues but reduces operational expense or cost, directly impacting the Service providers bottom line.

What are your thoughts about the advantages of Least Cost Routing? Let me know in the comments below.

Looking for more information? Read Injecting Quality into Least Cost Routing Models.

Written by Graham Kunz – Graham on Twitter | Posts by Graham
Graham is Empirix’s European Service Assurance Expert and he’s worked in the tech industry for nearly twenty years. More than 14 years of that time has been in Service Assurance, working with wireless customers and internal teams to understand and capture product requirements, as well as develop and introduce products. His global outlook, wireless technology knowledge and technical know-how provide him with an excellent perspective on the current and future direction of mobility and the wireless industry.

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