Guides

Least-cost or quality routing? The honest answer is both

Buying voice on price alone quietly costs more than it saves. Here is how least-cost and quality routing actually differ, and how to blend them without overpaying.

A

Aircom Limited

Network & Carrier Operations

3 min read

Ask a wholesale voice buyer what they optimise for and you will usually get one of two answers. Either they buy on price and manage the consequences, or they buy on quality and absorb the margin hit.

Both answers are wrong, because they treat routing as a single decision. It is not. It is a decision made per destination, per traffic type, and often per hour of the day.

Key takeaways

  • Least-cost routing optimises the rate per minute. Quality routing optimises the chance the call works.
  • The cheapest route is only cheapest if you ignore the cost of calls that fail.
  • Most mature setups blend the two, with the split driven by what the traffic is for.
  • Automatic failover matters more than the initial route choice: routes degrade without warning.
  • You cannot manage any of this without per-destination reporting you can see in real time.

What each approach actually does

Least-cost routing (LCR) sorts the available routes for a destination prefix by rate and sends the call down the cheapest one that is currently up. When it fails, the engine tries the next cheapest.

Quality-based routing sorts the same routes by measured performance (answer rate, average duration, post-dial delay, caller ID integrity) and sends the call down the best performer, accepting a higher rate to get it.

The difference is which column the sort runs on. Everything else about the mechanism is identical, which is why blending them is straightforward once you decide what each type of traffic is worth.

The cost that LCR hides

The argument for pure least-cost routing is simple arithmetic: a route at 0.8p per minute beats one at 1.4p per minute, so use the cheaper one.

That arithmetic is only complete if a connected minute on both routes is worth the same. Often it is not.

Consider outbound calls confirming appointments. If the cheap route connects 72% of the time and the premium route connects 88%, the cheap route is not saving 0.6p per minute, it is failing to reach 16 in every 100 of the people you were trying to reach. Whether that matters depends entirely on what a reached person is worth, which is a business question, not a telecoms one.

The same logic runs in reverse. For traffic where a failed call genuinely costs nothing (a retryable notification, an internal test, a low-value automated dial), paying premium rates buys nothing at all.

Where each one fits

Traffic typeLean towardWhy
Customer support, inboundQualityA failed call is a customer who could not reach you
Appointment and delivery notificationsQualityReach rate maps directly to revenue and cost avoided
High-volume outbound campaignsBlendedVolume makes rate matter, but reach rate still drives return
Automated retryable alertsLeast costA failure costs one retry and nothing else
Anything carrying your brand's caller IDQualityStripped or rewritten CLI damages answer rates over time
A starting point, not a rule. The right split depends on what your calls are for.

The part that matters more than the sort order

Whichever way the routing engine sorts, the thing that determines real-world quality is what happens when a route degrades.

Routes do not fail cleanly. They drift. A supplier's own upstream changes, a destination network congests during local business hours, an interconnect starts stripping caller ID after a config change. In none of those cases does the route go down. It just quietly gets worse.

Three things make that survivable:

  1. More than one route per destination. Without an alternative, failover has nowhere to go and comparison has no baseline.
  2. Automatic failover on measured degradation, not just on hard failure. A route that has dropped 15 points of ASR should stop receiving traffic before a human notices.
  3. Per-destination visibility in real time. A weekly report tells you what went wrong last week.

A workable default

For most buyers, a sensible starting position looks like this: quality-routed by default for anything customer-facing, least-cost for anything automated and retryable, at least two routes on every destination that matters, and automatic failover triggered by measured performance rather than by outage alone.

Then review it per destination rather than in aggregate. Blended averages are where routing problems go to hide.

Frequently asked questions

No. Least-cost routing is a sensible default for a large share of traffic, particularly where calls are short, tolerant of occasional failure, or not customer-facing. It becomes a problem only when it is applied indiscriminately to traffic where a failed call has a real cost, such as customer support, appointment confirmation or anything revenue-generating.

Broadly, a premium route is delivered over fewer intermediate carriers and preserves caller ID end to end, while a standard route may be resold several times and is more likely to strip or rewrite CLI. Premium routes typically show shorter post-dial delay and more stable answer rates, and cost more per minute as a result.

Enough that no single supplier failing takes the destination offline, which in practice means at least two and often three for important destinations. The value is not only redundancy but comparison, since without a second route carrying the same traffic, you have no baseline to tell whether the first one is performing well or badly.

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