Least-cost routing (LCR) technology lets organizations select outbound communication travel based on which offers the most economical rates.
Carriers have been using LCR for a while, and now it is being embraced for enterprises that want to cut expenses.
Most enterprises that use LCR are able to lower termination costs by at least 40 percent, TransNexus reported.
They want the same kind of lower costs that carriers find with LCR. But many enterprises have insufficient knowledge about the telecom sector.
"Most large enterprises have underdeveloped skills in the telecommunications space," Jim Dalton, president of TransNexus, said in a statement carried by TMCnet. "Managing such a network imposes heightened risk across the board if not done right."
There are examples of enterprises getting benefits from LCR.
For example, Mark Adams, the owner of Ohio-based Infinity Marketing, an enterprise that recently implemented LCR, said, "When I told my providers that we had deployed an LCR solution, many of them offered us lower rates. Just installing the LCR software gave us an immediate return on our investment."
The need to cut costs is underscored by recent data included in a TransNexus report called “Telecom Carrier Solutions Adapted for the Enterprise.” The top 100 U.S. employers have an average of over 200,000 employees, according to data cited from the U.S. Securities and Exchange Commission. That means there are more than 100,000 phone lines in the company.
In addition, 99 percent of telephone carriers have 100,000 or fewer lines in operation, the Federal Communications Commission said. That means non-telephone enterprises are often managing a network which is bigger than the one found at many carriers.
The TransNexus report also shows that 23 percent of telecom invoices at businesses contain errors each month, according to the Aberdeen Group. This is another issue that needs to be addressed.
Edited by Rich Steeves