Least Cost Routing and the Effect on Call Accounting
July 28, 2011
By Susan J. Campbell
TMCnet Contributing Editor
Any organization today competing on an international level must be able to effectively manage its telecom activities. This management requires a close focus on call accounting to ensure the organization is communicating in ways that are the most efficient and cost-effective for the organization.
In a recent Billing World
article, the concept of least cost routing (LCR) was explored as a key tool for
call accounting. Once a cumbersome process, LCR was streamlined with the advent of Intelligence Network SS7 and SIP based LCR. The automation enabled in these advancements bypasses the switching updating process and dips into the database on a dedicated server.
Even with an improved process, international LCR as it contributes to call accounting is still a complicated process. The challenges that emerge include imprecise routing and headaches with number portability. Service providers also often encounter dispute issues and a flood of rate sheets provided by wholesalers that must be plugged into the service provider’s LCR system to capture accurate information for call accounting
processes.
In an interview with John Fitzpatrick, head of Product Engineering for TEOCO’s (News - Alert) LCR products, provides his insight into LCR, the challenges in the industry and why LCR matters for call accounting. He also noted that TEOCO refers to LCR as optimal cost routing, as the least cost is not always the priority. The routing for the call may need to rely on the
quality of service and cost.
When determining the right parameters for call accounting, TEOCO is also focusing on origination-based routing. Fitzpatrick has found that the location of the call origination can be just as important as understanding where the call needs to go. If customers are segmented, higher segmented customers may need to be routed to higher quality and higher cost routes.
Call routing can be organized and managed according to the value of the route, not necessarily the cost. Call accounting
efforts can then be based on the quality and cost combination. That quality focus ensures the service provider can protect the subscriber base, while the cost element is still captured for proper forecasting and billing.
The wholesaler mix can also complicate the issue as their pricing rate sheets are carefully designed to optimize the revenue they receive from their customers. As a result, the wholesaler needs to run a future cost calculation. The service provider then runs a network model to capture the cost of the calling in the next seven days, the timeframe in which the wholesaler rates go into effect.
What the service provider is doing on the backside with the routing of calls will impact the call accounting practices for any organization. Quality does play a part and those companies willing to pay a premium should expect the provider to deliver higher quality communications.
Susan J. Campbell is a contributing editor for TMCnet and has also written for eastbiz.com. To read more of Susan’s articles, please visit her columnist page.Edited by Juliana Kenny