LCR has lost its cost advantage

As the benefits of least cost routing (LCR) are being touted with the May 2012 launch of Cell C’s LCR AnyNet, consumers are once again thrown into the small print of telecommunications costs.

Up for consideration are the implications of lower termination rates; what long-term impact the current and prospective cuts in the wholesale interconnect rates will have; and where to spend on infrastructure investment and new age technology models.

“Quite simply,” says Wayne Speechly, executive for communications at Internet Solutions, “LCR has lost its cost advantage. As VOIP services become mainstream and commoditised – a trend we are witnessing gather momentum on a month-by-month basis – so the benefits of LCR become diluted.”

“This doesn’t even take into consideration the value added capability like unified communications or enterprise mobility. LCR is limited in its ability to add value and certainly doesn’t drive the adoption of better organisational communications capability.”

As the interconnect rate drops, it is business and users that embrace VOIP that stand to benefit most from the net gain – especially those clients utilising mobile VOIP.

“There is no real argument for remaining with an LCR provider. In a like for like comparison, examining both cost and quality, LCR receives a drubbing from VOIP.”

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LCR has lost its cost advantage