Least-Cost Routing for VoIP and Telecom Services

Least-cost routing for VoIP and telecom services is all about finding the most efficient way to route calls. It's a complex process that involves analyzing data from multiple sources to determine the cheapest route for each call.

The goal of least-cost routing is to minimize costs while maintaining high call quality and reliability. This is achieved by identifying the best route for each call based on factors such as network congestion, latency, and cost per minute.

By using advanced algorithms and real-time data, least-cost routing systems can dynamically adjust call routing to take advantage of the cheapest available routes. This can result in significant cost savings for businesses and organizations that rely heavily on voice communications.

Least-cost routing can also help to reduce the risk of network congestion and downtime, which can have a major impact on business operations.

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Least-cost routing is a technology that helps save money on phone calls by finding the cheapest route to connect a call. This is achieved through a complex process that involves loading price lists from carriers into a specialized software routing engine.

The software takes these price lists and converts them into a standard format, a process called normalization. This ensures that all carriers' prices are on the same page, making it easier to compare and find the best deals.

A precalculated routing table may be created, which contains the best prices for each route. This table can be massive, with tens of millions of routes to consider.

When a switch receives a call, it sends a query to the routing engine for routing instructions. The engine responds with the precalculated route, or calculates a new route dynamically, and returns it to the switch within a few milliseconds.

The switch then routes the call to the cheapest route first. If that route fails, it tries the next cheapest route, and so on, until the call is answered or all routes have been tried.

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Least Cost Routing (LCR) is a technique that helps organizations lower their telecom expenses by routing calls to the network that will complete the call at the lowest cost.

Any organization with interconnections to other networks has the opportunity to use LCR. This is typically done by creating a routing table that matches telephone dial codes with a list of destination networks rank ordered by cost.

Routing tables can be created manually or by specialized LCR software, which automates the process of building an optimized routing table. These tables can have tens of millions of routes.

The common practice has been to export the LCR table directly to a telephone switch or Private Branch eXchange (PBX). However, this technique has two limitations.

Legacy telecom switches have limited memory and cannot accept routing tables with more than a few million routes. This makes them too small for complete profit optimization.

Next Generation Networks (NGN) use a different technique to provide dynamic LCR with tens of millions of routes. This involves using an external routing engine to provide real-time routing instructions to one or more switches on a call-by-call basis.

The external routing engine is typically an all-software server that runs on conventional Linux-based servers with sufficient RAM to host tens of millions of routes.

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Least-cost routing used to be a relatively straightforward exercise, but it's no longer the case. With the increasing complexity of the industry, it's now a full-time job for experts.

The buying process has become a crucial part of least-cost routing. Buyers negotiate with suppliers and get a new price schedule, which is then loaded into software to calculate and compare termination costs.

The process involves five key steps: buying, costing, routing, pricing, and margin management. Here's an overview of each step:

Carriers must sign interconnect agreements with each other, specifying terms of payment, methods of dispute resolution, and notification procedures for pricing changes. The industry standard is seven days for price increases, and price decreases often take effect on the day of notification.

Pricing and margin management is a critical aspect of least-cost routing, where carriers aim to maximize their profits while minimizing costs.

Carriers negotiate with suppliers and load new prices into software to calculate and compare termination costs. This process involves a cycle of buying, costing, routing, pricing, and margin management.

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The industry standard is seven days for price increases, while price decreases often take effect on the day of notification. This means carriers must act quickly to re-route or increase prices to avoid losses.

The table below illustrates the different prices offered by various providers for routes to Spain and Italy. Note that not all providers offer all routes, and prices can vary significantly.

To avoid losses, carriers must be vigilant and monitor traffic volumes and margins closely. Loss-making traffic and odd routing can be investigated, and either the billing system's data is corrected or routing and pricing action is taken.

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Mobile number portability has a significant impact on VoIP and LCR environments. Mobile number portability makes it possible for subscribers to keep their existing mobile phone number when changing the service provider.

In countries where MNP is in place, LCR providers can no longer rely on using only a portion of the dialed telephone number to route a call. Instead, they need to discover the actual current network of every number before routing the call.

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Today, there are 197 million ported telephone numbers in North America, and up to 40% of all calls will not be routed to the lowest cost provider if least cost routing is based on the dialed telephone number.

Number portability checks are essential to ensure that calls work as intended, and VoIP companies need to handle MNP lookups before routing a call to guarantee this quality of service.

In countries without a central database like the UK, it might be necessary to query the GSM network about the home network a mobile phone number belongs to, adding complexity to LCR solutions.

The most recent MNP solution in countries like Singapore is expected to open doors to new business opportunities for non-traditional telecommunication service providers like wireless broadband providers and VoIP providers.

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To get started with LCR, ensure the following setup is complete: Configure connectors supporting transactions through local networks, enable one or more local debit networks in both connector and Hyperswitch dashboards, and set up a debit card.

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The Hyperswitch routing engine evaluates parameters like network fees, interchange rates, ticket size, issuer type, and more to automatically route transactions through the cheapest network in real time. This process typically takes around 20 ms.

LCR software can handle large code tables, with real-life tables containing more than 100,000 rows. It uses fast software algorithms to find the cheapest route within an affordable period of time.

A table of routes to different destinations might look like this:

Telecom carriers often buy and sell call termination services with other carriers, creating a complex network of suppliers and customers.

Telecoms carriers like Telewest and France Telecom have multiple routing options to a given country, each with different prices, qualities, and capacities.

In the de-regulated EU, licensed alternative operators like Cable and Wireless/Colt in the UK or Jazztel in Spain have established offices or points of presence (POPs) in major telecommunications hub cities.

The major US carriers, including Sprint, Verizon, AT&T, and Level 3, also have POPs in these hub cities, such as London, New York, Hong Kong, or Amsterdam.

Niche carriers specialize in providing termination to a small number of destinations, sometimes using grey routes.

The LCR team in a carrier follows a cycle, but it's not specified what that cycle is in the article section.

Least Cost Routing (LCR) software can vary from simple home-grown solutions to complex commercial products, with prices ranging from £0 to £500,000 for an installation.

LCR software must perform a range of tasks, including loading price schedules and code tables, comparing dial codes, and generating automatic orders to switches.

Routing platforms, such as standalone products and hosted services, offer advanced features like jurisdictional and profit margin protected routing.

Standalone LCR systems can integrate many powerful routing features, including standard LCR and offload routing from switching components.

Open source platforms like OpenSER/Kamailo exist, but they are less specifically geared toward exploiting the market niches involved in carrier telecommunications routing.

Some commercial LCR software solutions, like TransNexus, can handle the complications of today's VoIP industry and support up to 100,000,000 different VoIP routes.

To get started with LCR in Hyperswitch, ensure the following setup is complete: configure connectors supporting transactions through local networks, enable one or more local debit networks in both connector and Hyperswitch dashboards.

Here are some key features of commercial LCR software solutions:

Mobile number portability impacts the internet telephony, VoIP, and LCR businesses, requiring LCR solutions to handle MNP when routing a voice call.

In countries without a central database like the UK, it might be necessary to query the GSM network about the home network a mobile phone number belongs to.

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LCR tables can be very large, with over 1.5 million translations in a basic optimized least cost routing table for domestic US routing.

Route costs vary depending on the destination, with prices ranging from £0.0018 to £0.2364 per call.

There can be more than one provider for any given destination, and providers' prices might differ, requiring fast software algorithms to find the cheapest route within an affordable period of time.

To configure Least Cost Routing, you need to follow a few steps. First, ensure that connectors supporting transactions through local networks are set up with local networks enabled.

You'll then need to click on Manage to configure Least Cost Routing. A popup will guide you to confirm the three prerequisites: connector setup, debit card enablement, and local networks configuration. Click on Enable to activate LCR.

Once enabled, you can view Least Cost Routing as your active routing algorithm along with all previously configured algorithms on the Hyperswitch Dashboard.

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Configuring Smart Router is a crucial step in setting up Least Cost Routing. To begin, ensure that connectors supporting transactions through local networks are set up with local networks enabled.

You'll want to click on Manage for configuring Least Cost Routing. From there, a popup will guide you to confirm the three prerequisites: connector setup, debit card enablement, and local networks configuration.

Click on Enable to activate LCR. Once enabled, you can view Least Cost Routing as your active routing algorithm along with all previously configured algorithms on the Hyperswitch Dashboard.

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Carriers often quote rates in terms of OCN, LATA, and Tier instead of dial codes. This can make it difficult to determine the best route for a call.

Most carriers have six to eight rate tiers per LATA, but these tiers are not standard and can vary between carriers. Every carrier has its own unique tier structure.

Technicians must normalize carrier rates from OCN, LATA, and Tier to E.164 dial codes, but manually doing so using the LERG is a big task.

Code Range Normalization is a crucial process in Least-Cost Routing Configuration. It's necessary because destination codes, or prefixes, are not standardized across the industry.

Carriers use different codes for destinations within a country, even though they follow the International Telecommunication Union E.164 standard for country codes. This can lead to differences in price-lists, making it hard for carriers to work together.

For example, Carrier A's price-list shows a prefix of 34 for Spain, while Carrier B's price-list shows a prefix of 34 for Spain as well, but a price of 0.007. Carrier B also has a prefix of 346 for Spain Mobile.

Normalization converts all price-lists to a single format, used in the system. This is often done dynamically, upon generating the routing table.

Configure Least Cost Routing in a Smart Router by following these steps: Configure Prerequisites, Click on Manage, confirm prerequisites, and click Enable to activate LCR.

The goal of Least Cost Routing is to find the cheapest route to a destination, but it's not always a straightforward process. There can be more than one provider for any given destination, and providers' prices might differ.

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To optimize Least Cost Routing, you need to consider multiple routes and providers. Here's an example of a table showing three differently priced routes to Spain and Italy:

Fast software algorithms are used to find the cheapest route within an affordable period of time, usually about 20 ms.

Least-cost routing involves routing calls to the most cost-effective destination. This is achieved by comparing prices from different telecoms service providers.

Each destination has its own cost, which is reflected in the price column of the example table. For instance, the price to call Spain is 0.0024, while the price to call Italy is 0.0018.

To make routing decisions, LCR solutions need to handle mobile number portability (MNP) checks. This ensures that the call is routed to the correct network, even if the subscriber has changed service providers.

LCR solutions can use a central database or query the GSM network to determine the home network of a mobile phone number. This is especially important in countries without a central database, like the UK.

Here's a breakdown of the example table's price column:

LCR solutions also need to handle MNP lookups before routing a call, ensuring that the voice call will actually work. This is crucial for businesses looking for reliable internet telephony providers.

Number plan analysis is a crucial task in the carrier-carrier market, where different carriers use different codes for destinations within a country.

Each carrier uses the International Telecommunication Union E.164 standard for country codes, but codes for destinations within a country vary between carriers.

Monitoring changes in suppliers' dial codes is essential for number plan management, as it helps companies improve costs by adding or removing codes from their own code tables.

Implementing these changes across switches, billing systems, and other platforms is a significant task for engineering and billing departments.

The carrier-carrier market lacks agreed definitions of its destinations, making number plan analysis even more challenging.

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Least Cost Routing can be configured in smart routers through a step-by-step process.

To begin, ensure that connectors supporting transactions through local networks are set up with local networks enabled.

Clicking on Manage for configuring Least Cost Routing is the next step.

A popup will guide you to confirm the three prerequisites: connector setup, debit card enablement, and local networks configuration.

An LCR box is another type of equipment that routes calls to the appropriate supplier based on programmed prices from telecoms service companies.

The Longest Prefix Match rule is a crucial part of Least-Cost Routing Mechanics. It determines which prefix to select when multiple prefixes match a destination number.

This rule is all about choosing the longest matching prefix. For example, if a call is made to 34605XXXXXXX, it will be routed to Spain Mobile ORANGE because 34605 is the longest matching prefix.

In cases where a call doesn't match any single prefix, the system will select the longest matching prefix from the available options. For instance, a call to 3461XXXXXXXX will be routed to Spain Mobile, which is the longer of the two matching prefixes 34 and 346.

Here's a table illustrating the Longest Prefix Match rule:

This table shows how the Longest Prefix Match rule works in practice.