Least Cost Routing

What Does Least Cost Routing Mean?

In telecommunications, least cost routing (LCR) is the idea of choosing the path with the least distance for the data trajectory. This can help with the cost of telephone calls. Engineers have to analyze, select and direct the path of outbound and inbound calls.


Techopedia Explains Least Cost Routing

Typically, least cost routing involves creating what is known as a “routing table” matching telephone dial codes to destination networks. This can be done manually or with the use of software. One of the challenges with least cost routing involves the size of the call routing table, where new methodology has evolved the use of LCR protocols.

Analysts cite common “misconceptions” about LCR involving LCR logistics and what it can do for an enterprise or telecom operator. For example, a trajectory set as a least cost route may actually have thresholds or hidden costs that apply, requiring engineers to change the plan. Companies that see LCR as a “simple” proposition can be disappointed by the complexities of defining a most beneficial route. Other potential problems include various routing errors.


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Margaret Rouse
Technology Expert

Margaret is an award-winning technical writer and teacher known for her ability to explain complex technical subjects to a non-technical business audience. Over the past twenty years, her IT definitions have been published by Que in an encyclopedia of technology terms and cited in articles by the New York Times, Time Magazine, USA Today, ZDNet, PC Magazine, and Discovery Magazine. She joined Techopedia in 2011. Margaret's idea of a fun day is helping IT and business professionals learn to speak each other’s highly specialized languages.