LCR Table Rates – Penny Wise, Pound Foolish!

LCR Table 101: A Quality Network Can Save You Money!

When trying to get into new LCR tables, we find at GKK Griffin that even through we work with a number of vendors who have aggressive pricing. Rates that win millions of minutes in RBOCs, Tier 1 Carriers and large Tier 2 Carriers’ LCR tables, that when we send pricing to smaller providers and arbitrage carriers they say the rates are too high. Often this assessment is not completely accurate see below.

The Cost of Low ASRs

If the first position vendor in a given carrier’s LCR table has a low ASR (Answer Seizure Ration) and only successfully terminates 10% of the calls and the second position vendor only completes 15% of the calls and the third position carrier completes the bulk of the calls (65%) and 10% of all calls hit the fourth position provider, then the true average per minute price may actually be much higher than first believed.

For the sake of argument lets imagine that the LCR table rates for NPA/NXX 201/202 are as follows:

LCR

Rate

1st

.00350

2nd

.00380

3rd

.00452

4th

.00479

5th

.00500

True Costs and Savings

The true cost per minute for 201/202 NPA/NXX would be USD $.00434 based on the completion percentages mentioned above. If the rate being offered is USD $.00403 for NPA/NXX 201/202 and has an ASR of 80% and you insert that price into your LCR table as third in route the average savings per million minutes per month is USD $394.50 or a 9.1% savings over the current LCR configuration.

Current LCR vs. High Quality LCR

LCR Rate

MM

Cost

LCR Rate

MM

Cost

.00350

100,000

$350.00

.00350

100,000

$350.00

.00380

150,000

$570.00

.00380

150,000

$570.00

.00452

650,000

$2,938.00

.00403

750,000

$3,022.50

.00479

100,000

$479.00

.00452

0

$0.00

.00500

0

$0.00

.00479

0

$0.00

.00500

0

$0.00

Subtotal

$4,337.00

Subtotal

$3,942.50

So just because a vendor does not beat your first in route LCR Table rates doesn’t mean that it couldn’t offer a significant savings especially if the network quality is commercial grade and the ASR rates are in the 80’s.

When you factor in that the higher quality network can reduce the number of trouble tickets and network issues and you include the savings from the reduced man-hours spent handling trouble issues the costs savings can jump up significantly.

Want to learn more about the high quality services GKK Griffin offers and the premium carriers we represent, contact us today!