Traditional Least Cost Routing (LCR)
Least Cost Routing (LCR) is a strategy implemented by businesses in order to save costs on monthly telephone accounts. The system allows for the automatic routing of outgoing calls along the cheapest route possible from source to destination, switching at the branch exchange, and redirecting the call using relevant cellular routers based on the network required. No extra prefixes or codes need to be entered; making the use of LCR systems effortless in addition to being cost effective.
Least Cost Routing (LCR) challenges Voice Over Internet Protocol (VOIP)
In recent years, VOIP has begun to emerge as an opponent for traditional LCR and switched voice service providers in South Africa. Larger corporations that made use of large call centre environments in the past have been open to utilising VOIP as a part of their cost-saving strategy; however, with regards to small and medium enterprises (SME’s), the implementation of VOIP has been hindered – largely due to the fact that many SME’s believe that cost-savings using VOIP will only be accounted for should a high ratio of outbound international calls occur on a monthly basis. In addition, it has been noted that even larger companies find it difficult to match the value that their long-standing LCR strategies have to offer – allowing LCR to remain ahead of VOIP for the moment.
The Previous Trends and Growth of Least Cost Routing (LCR)
The telecommunications service market was estimated to be worth upward of R102.5 billion in 2008, with approximately R17.2 billion being dedicated to LCR, mobile and bulk SMS (Short Message Service) markets. Although the current economic climate has resulted in a reduction in spending, it is estimated that overall corporate spend on telecommunications services will increase at a rate of 7.9% between 2009 and 2013.
The Future of Least Cost Routing (LCR)
Although the current economic climate has meant that many SME’s are being forced to liquidate, a positive growth curve in the telecommunications industry is still expected. This is largely due to the fact that when faced with situations such as the current economic downturn, cost-saving strategies are sought by SME’s, who look toward different methods of business and alternative technologies to cut costs. Hence, LCR strategies that save costs on outgoing calls will experience an increase in overall demand, and SME’s will actively look for a reliable service provider that can offer the most viable LCR strategy at the lowest possible cost – ensuring that LCR will continue to grow and be utilised by more businesses in the future.
For a reliable and cost-effective LCR solution, contact Talking Telecom on 086 123 TALK, or email a knowledgeable staff member for more information: sales@talking.co.za
To find out more contact
086 123 TALK or email sales@talking.co.za
