Least Cost Call Routing


Least cost routing (LCR) is the process that allows the carrier to financially optimize call termination by routing its customer’s interstate, intrastate and international calls. Optimizing this process improves the carrier’s margins significantly. Least cost routing decisions are based on supplier rates as well as call quality, route availability, network traffic, volume commitments, etc. Typically, carriers have to choose routes between several suppliers for destinations across the US and world. Supplier rates could change periodically and hence the routes have to be frequently optimized to maximize the profit margin.


Our client, a fast-growing VOIP company, was initially performing the routing decisions by hard coding the routes into the system until it added several new suppliers for call termination. As the new suppliers were changing rates more frequently, it opened the possibility of saving money through dynamic call routing. In a preliminary analysis of the commercially available [COTS] products, it was clear that none of the products provided the least cost routing for international as well as interstate and intrastate calls. Moreover, none of the products offered dynamic call routing. Moreover, these products lacked automated supplier rate sheet transformation to update rates dynamically. This client required a custom solution that could upload supplier rate sheets automatically, analyze rate sheets, route calls to least-cost provider and consider call quality, network availability, etc.

Our Solution

Our professionals analyzed the business and technical challenges, designed an innovative solution, and developed and implemented a comprehensive Least Cost Routing system. This system has offline as well as real-time components. The offline component has a web-based GUI for users to interact with the system. This offline component allows LCR users to upload raw rate sheets. Upon user request, the system considers rates from all suppliers, LERG reference data, class, etc. to calculate cost-optimized routes. The offline component also allows administrators to create dynamic rules to override the least-cost routes. Additionally, the system allows creating groups of premium customers who have requested better call quality. The real-time component is integrated with the IP soft-switch to dynamically select the route when a call is initiated. It uses the cost-optimized routes prepared by the offline component as well as the dynamic rules, dial plans, customer groups, etc. to determine the best route. Moreover, the real-time components also integrate a dedicated server to determine call quality and route availability. This system performs at a peak load of 300 calls per second.

Savings of $250K/month

Allows global routing strategy in near real time

Enables instant decision implementation with changing business conditions

Provides strategic segmentation of customers to increase satisfaction

Scalability through distributed architecture that allows one instance per node

Uploads supplier rates using rules-based engine

Detailed analysis of supplier rate sheets to determine potential benefits

Handles 300 calls/sec with 4.5MM optimized routes!

Comprehensive cost optimized routing decisions for local long distance and international calls

User defined rules-based routing allows routing changes in minutes

Manages complex rate sheets, agreements, volume commitments and discounts

Real-time measurement of call quality, network traffic, availability and capacity

Web-based secured intuitive interface for routing administration

IT Strategy
workMETHODS strategized the solution and technologies.

IT Turnkey Solution Development
workMETHODS developed a custom solution based on above technologies.

IT Managed Services
workMETHODS hosts the solution on its servers. We manage and monitor the servers. We provide email and phone based application support.