VoIP businesses are empowered by the top VoIP solutions that are built to meet specific business demands. Manifold VoIP solutions are available that can be used by VoIP service providers to run one or more types of businesses. VoIP telephony service providers and internet telephony service providers (ITSPs) are two major businesses in the VoIP industry. Class 4 and class 5 Softswitch solutions are commonly used to run VoIP telephony and business service businesses. There are different moving parts that can be involved in billing clients in these businesses and one of them is call routing strategies like least cost routing (LCR).
The role of LCR is huge and essential in a VoIP telephony business to make it more profitable and mount up the ROI chart. Let’s delve deeper to know how it happens, but before that let’s understand how call routing rules contribute to improving profit or making revenue.
What are call routing strategies in VoIP businesses?
Several VoIP businesses are dependent on routing call traffic or other types of VoIP traffic from source to destination, which can be local or international destinations. As for some businesses, this is the major service used by customers, the business and revenue generation models rely on the type of call routing features available in the software and used to provide services.
For example, for wholesale service providers, the businesses use different features to route wholesale call traffic using class 4 Softswitch to route calls from source to destination.
What is the least cost routing rule in the VoIP business?
One of the most popular call routing rules available to the users of class 4 and class 5 Softswitch solutions is LCR. A single business can have multiple termination gateways offered by different carriers or termination service providers. As the name suggests, LCR compares the cost of each of these providers to route the call to the destination and selects the route that is cheapest among all. This is one of the most powerful routing strategies because it helps in making VoIP calling services cheap for customers.
How does LCR help in making a VoIP business profitable?
A majority of customers use VoIP based calling services because they can enjoy cheap communication services even for international calling. This is the reason LCR has been the most conventional yet the most popular routing strategy in the VoIP businesses.
The VoIP service provider can collect termination rates from termination service providers and as the market is quite competitive, it is likely that the provider would get the most amazing deals and rates from the termination providers.
The VoIP service providers can configure these rates in the rate card using the class 4 Softswitch solution. This will automate the process of selecting the best and cheapest termination gateway. Moreover, it automates billing and invoicing for the customer. This saves time and manual resources for the service providers and reduces expenses, which contributes to profit making.
As mentioned earlier, there are several customers that are looking for cheap VoIP calling services. You can allure more customers as you will have a range of cheap calling options by getting the best and cheapest rates from the termination service providers. This will help you elevate your revenue generation.
This way, using the least cost routing strategy, a wholesale VoIP service provider or ITSP can define the whole business model and increase profit making. By reducing expenses with the right features and increasing revenue by attracting several customers, a provider can make his or her VoIP business more profitable. LCR is one of the most profitable features and the best VoIP Softswitch solutions can have multiple competitive call routing features to help providers make more profit for their businesses.