Least Cost Routing Delivers for Cellular Operator

Bangkok Beach Telecom recently has been working with a North American Tier 3 Mobile operator to lower their cost to deliver long distance calls. The operator felt they had already done much to optimize these costs using their own in-house tools. We proposed using our Least Cost Routing  model (LCR) to see if these costs could be further lowered. We charge nothing to determine the potential savings LCR may yield, and going forward is up to the operator.  This operator was quite surprised to learn that a further 50% reduction in their average cost per MOU was achievable.

We collected relevant operator and switch information for the LCR, and asked the operator to seek the latest rate decks from the long distance service providers (Inter-Exchange Carrier, IXC) they already used. We also suggested a couple other IXCs with whom we have had success elsewhere.

To gauge the impact on pricing that LCR might have, we asked for a summary of the long distance traffic during a previous month.  We call this a call distribution summary.  It shows the number and total MOU for every NPA/NXX/BLOCKID.  The distribution is aggregated and the originator’s number is never shown, so there are no privacy concerns.  Bangkok Beach Telecom can generate such a call distribution using our own tools from if the operator prefers.

Effect of LCR Translations for Tier 3 Mobile Operator
Long Distance delivery cost reduction using Least-Cost Routing

The chart shows the results. From a baseline aggregated cost/MOU in March 2013, our Least-Cost Routing model predicted that costs for this call distribution could be reduced by about 50%.

In addition to predicting the resulting average cost/MOU LCR generates a file of all switch translations for these new routes. The translations file is easily applied using switch-provided utilities.  The translations can be uploaded without actually being put into service to allow safely testing the results.  Most switches make it pretty straightforward to do this, and to cutover to the new translations whenever desired.

We’d be happy to have a look at your own long distance cost structure.  Kindly get in touch with us to start.

Leave a comment

Your email address will not be published. Required fields are marked *