Reverse Least Cost Routing Rate Management for Telecom Carriers
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Solution Overview
Problem
Telecommunication carriers unknowingly lose network traffic and business due to 'least cost routing' practices, where they are not notified of higher rates by competing carriers, leading to traffic being routed through lower-cost carriers without their awareness.
Innovation Solution
Implementing a system for reverse least cost routing rate management, which monitors network traffic changes and generates a new, competitive rate for carriers affected by least cost routing, allowing them to optimize their rate structures and regain lost traffic and revenue.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of energy
If least cost routing is practiced to reduce telecommunication costs, then telecommunication costs are reduced, but carriers unknowingly lose network traffic and business to carriers with lower rates
Solution Approach 1:
The system continuously monitors network traffic patterns and routing decisions, providing feedback to the least cost routing software about traffic losses and carrier performance. This feedback loop enables dynamic adjustment of routing strategies to balance cost reduction with traffic preservation, allowing carriers to respond to changing network conditions and prevent unknowing traffic loss.
Solution Approach 2:
The patent introduces an intermediary system that sits between the least cost routing software and the routing tables. This intermediary monitors routing decisions, identifies when traffic is being lost to lower-cost carriers, and intervenes by adjusting routing tables or notifying carriers. The intermediary acts as a mediator that reconciles the conflict between cost optimization and traffic preservation.
2Productivity
If least cost routing occurs without notifying carriers with higher rates, then routing efficiency is improved, but carriers with higher rates unknowingly lose business
Solution Approach 1:
The system implements feedback mechanisms that notify carriers when their traffic is being routed elsewhere due to lower rates. The monitoring component tracks routing decisions and provides information feedback to affected carriers, enabling them to make informed decisions about rate adjustments or routing strategy changes while maintaining overall routing efficiency.
Solution Approach 2:
The system performs preliminary actions by pre-configuring routing tables with multiple carrier options and pre-notifying carriers before traffic is redirected. This allows carriers to prepare rate adjustments or alternative routing strategies in advance, preventing complete traffic loss while maintaining efficient routing operations.
Data Source
AI summary
The present disclosure describes systems and methods for performing reverse least cost routing and price management. In particular, a telecommunications carrier monitors network traffic for a wholesale carrier customer using the carrier's telecommunication services. A new pricing scheme and/or rate for network usage by the wholesale carrier may be generated based on a set of policies created by the carrier, such as when it is determined that the wholesale customer's network usage has decreased. The generated rates and/or pricing schemes may be provided to the wholesale carrier customer in real time.