What is Least Cost Routing and its significance in VoIP
                     
• Least Cost Routing is a call routing process.
• This process determines the least expensive way to route 
telephonic calls.
• It works for both inbound and outbound traffic to analyse 
and select the route and direct it.
• Call Routing System is also known as Automatic Call Distributor 
(ACD).
• From the separate hardware of the previous generation, today 
call routing is achieved by a simple software. 
• Call routing helps to prevent “lost calls”. Thereby saving 
revenues through optimising the cost of human resource.
• ACD-based routing: In ACD based routing, the longest waiting calls 
are directed to the longest waiting advisor. 
• Priority-based routing: This type of Routing determines the call 
based on the importance of the caller. 
• Skills-based routing: The requirement of the caller here affects the 
call routing process as the special skilled person will be attending 
to this call. 
• Routing in VoIP is similar to normal call routing. 
• In VoIP routing, VoIP traffic transmission from one destination to the other 
takes place. 
• For a successful VoIP business routing effects a lot. It determines the call 
terminating capacity to different destinations.
• LCR helps in the selection of the terminating gateway. 
• The Least Cost Routing process selects the most cost-effective gateway 
resulting in profits. 
• Integration of the Least Cost Routing with the Softswitch results in the 
effective routing of calls.
• Least Cost Routing is an inbuilt feature available in modern-day Softswitch.
• A proper configuration of the LCR is necessary for it to function.
 
• The resulting call cost also depends on the configuration level of the LCR.
Ways in which LCR benefits the Service Providers are:
• Provide a better quality VoIP Service
• Reduce the VoIP billing to a minimum through LCR traffic route  
optimisation
For the consumers, LCR makes the VoIP Service charges nominal and 
affordable. 
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