Least cost routing (LCR) has become a very desirable and popular feature in PBX Systems in India. This is because of differential charging by telecom operators for making outgoing calls to land line fixed phone, mobile phone or cellular phone. In India, normally one pays higher while making a call from landline to a mobile phone than making a call from land line number to another land line. Apart from this, there is another, there is also another charge, known as inter-connectivity usage charge. Here, if a call is made from a number of one telephone company to a number from another telecom company, they charge higher than calling a number of the same telecom company.
So, there is a differential charging for making calls to different numbers of different operators. PBX systems can make intelligent decisions of routing the call according to the dialed number. For example :-
1. One PABX system has CO (Call Office) connection or PSTN ( Public Switched Telephone Network) connections with all telecom service providers. One office in Delhi will have its PBX connected with all telecom operators in Delhi, like Airtel, Aircel, Vodafone, MTNL, IDEA, MTS, Reliance. Now if some one in the office calls to a Reliance number, his call will use Reliance CO lines to place the outgoing call. Similarly, for any outgoing calls to Airtel, it will use Airtel CO connectivity. This kind of intelligent routing is called least cost routing and it can reduce cost of making outgoing calls for a company.
In order to have CO connectivity with mobile telephone operators, one will have to use either PRI lines or will have to use GSM modem/ Fixed cellular terminals. Many PABX systems are coming with built in GSM terminals which can be used for LCR.
There are also few manufacturer who provide such equipment which can have multiple SIM cards to make and receive calls and ISDN interface to connect to PABX system for call routing.
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