Browse Definitions :
Definition

least cost routing (LCR)

Contributor(s): Matthew Haughn

Least cost routing (LCR) is a pricing strategy used by telecommunications providers to select the lowest cost carrier for bandwidth provision when connecting a call.

By helping reduce the costs of data transmission, LCR allows for telecommunications providers to minimize costs by selecting call routes that require the least amount of point-of-presence (POP). The mechanism also helps ensure competition among bandwidth providers and can be an important part of VoIP and IP telephony.

Generally, LCR applies to interstate or international communications, where the provider chooses a carrier to complete a call originating within one state or country from the exchange in which the call is received. In the case where a customer uses an out-of-state number, the call still has to be routed to be completed. LCR can also be used to ensure quality connections for callers connecting within a state or country.

Telecom providers may have several or hundreds of choices when it comes to choosing routes for lowest cost. Bandwidth cost comparisons and negotiations may be made by a department of employees in an LCR-specific team within the telecom organization. Software or devices called lowest cost routers are used to make cost comparisons, which might be compared weekly, monthly or quarterly.

This was last updated in November 2018

Continue Reading About least cost routing (LCR)

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

-ADS BY GOOGLE

File Extensions and File Formats

Powered by:

SearchCompliance

  • compliance audit

    A compliance audit is a comprehensive review of an organization's adherence to regulatory guidelines.

  • regulatory compliance

    Regulatory compliance is an organization's adherence to laws, regulations, guidelines and specifications relevant to its business...

  • Whistleblower Protection Act

    The Whistleblower Protection Act of 1989 is a law that protects federal government employees in the United States from ...

SearchSecurity

  • Cybercrime

    Cybercrime is any criminal activity that involves a computer, networked device or a network.

  • data breach

    A data breach is a confirmed incident in which sensitive, confidential or otherwise protected data has been accessed and/or ...

  • zero-day (computer)

    A zero-day vulnerability, also known as a computer zero day, is a flaw in software, hardware or firmware that is unknown to the ...

SearchHealthIT

SearchDisasterRecovery

  • cloud insurance

    Cloud insurance is any type of financial or data protection obtained by a cloud service provider. 

  • business continuity software

    Business continuity software is an application or suite designed to make business continuity planning/business continuity ...

  • business continuity policy

    Business continuity policy is the set of standards and guidelines an organization enforces to ensure resilience and proper risk ...

SearchStorage

  • business impact analysis (BIA)

    Business impact analysis (BIA) is a systematic process to determine and evaluate the potential effects of an interruption to ...

  • RAID (redundant array of independent disks)

    RAID (redundant array of independent disks) is a way of storing the same data in different places on multiple hard disks to ...

  • dedicated cloud

    A dedicated cloud is a single-tenant cloud infrastructure, which essentially acts as an isolated, single-tenant public cloud.

Close