From the most basic of research in the telecommunications space, it’s easy to ascertain that VoIP communications and the implementation of the VoIP switch can significantly lower the total cost of communications. What is not so clear is how VoIP providers accomplish this in an environment where calls still need to be made to users on the PSTN.

According to a report released by TransNexus (News - Alert), a developer of VoIP network management software, the recent proliferation of enterprise telecommunications networks and the strategies innovative companies use to manage them are worth closer examination. As the top 100 employers in the U.S. average more than 200,000 workers, each company is managing 100,000 phone lines.

The FCC (News - Alert) is also showing that 99 percent of telephone carriers currently have 100,000 or fewer lines in operation. When examining both on a broad scale, a number of non-telephone companies are now managing a phone network that is larger than that of most carriers in the market today. The downside is these companies may not have the manpower or expertise to facilitate the telephony network as efficiently as the carrier.

According to TransNexus president, Jim Dalton (News - Alert), many of these large enterprises lack the skills needed to run an effective telecommunications network. They are also challenged when it comes to understanding and managing the associated costs. When such a network is not managed correctly, it generates heightened risk across the board. It also means inefficient methods may be in place simply due to a lack of industry expertise.

One area of needed expertise is in that of Least Cost Routing (LCR), a must when a VoIP switch is in place. This is the process of analyzing, selecting and directing the path of outbound communications traffic based on the lowest possible rates. Telecom carriers have for years relied on LCR technology to ensure margins are low and they are able to stay competitive. Without knowledge of how to leverage this technique, the enterprise may be spending considerably more on communications than necessary.

On the other hand, those organizations able to implement a least cost routing solution are able to reduce their total termination costs by a minimum of 40 percent. This is a considerable savings for a company that is managing 100,000 lines or more. And, if the organization has a solid relationship with the carrier, they may be able to leverage the LCR even further.

For instance, Mark Adams with Infinity Marketing noted that his enterprise recently implemented an LCR. When he shared with his providers that the LCR was in place, he was offered lower rates by the majority. Simply installing this capability gave the enterprise an immediate return on investment.

While all success stories may not have the same immediacy to them, the fact of the matter is there is a science to mastering the VoIP switch to the benefit of the enterprise. Least Cost Routing is an important move, but so is hiring the right staff to manage the system for optimal efficiency.