Least-cost routing

What is least-cost routing in telecom? Learn all you need to know about least-cost call routing here.

What is least-cost routing?

Least-cost routing (LCR) is the process of choosing the route of outbound call traffic based on its cost. Least cost routing always aims to find the cheapest possible call route. Phone service carriers will periodically select between routes from a few to hundreds of carriers for destinations around the world. Today, this process is typically automated by a software program called a least-cost router..

How does least-cost routing work?

By routing calls to the network that will complete the call at the lowest cost, an organization with interconnections to other networks are able lower their telecom expense. In order to get least-cost routing, a routing table is created that matches a list of phone numbers with a list of network addresses ranked by their price. Routing tables can be created manually, but are oftentimes created by least cost routing software that automates the process. This is especially helpful in routing where routes can have millions of possibilities.

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