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Least-Cost Routing Threatens Rural Phone Call Completion
New submitter kybred writes "Rural landline users are increasingly having problems with incoming calls not completing or being dropped. The culprit may be the bargain long distance carriers penchant for 'least cost routing' combined with the conversion of the Universal Service Fund to the Connect America Fund. From the Fine Article: 'Rural phone companies are the victim here," Steve Head says. "They charge a higher rate to terminate calls as it costs more for them. Shoreham Tel gets beat up because everyone calls them and says something is wrong with your system, but it's not. We've been through all of their lines and equipment and there is nothing wrong with it; it's the least-cost routing carriers.'"
They expect to receive the service they paid for. Same as those living in the middle of a 5 mil+ city.
If the company can't provide them with the service, they shouldn't have sold it. I doubt on their contract says anywhere that X% of the calls will be randomly dropped.
I see one solution for them, for those companies I mean. Skype or something similar. Calls anywhere in the world for a flat fee. Bypass those "carriers" entirely.
That's the irony here. Least-cost routing is one "equal and opposite reaction" to the "sender pays" system and the way calls are billed at termination.
Many of the rural exchange operators signed deals with carriers like Level3 who operated large dialup modem pools in rural exchanges near big cities are looking for ways to use that interconnect. It's really hard to feel "sorry" for these rural phone companies when they went out of their way to get this traffic in the first place 10-15 years ago, and now have these same carriers representing a significant chunk of their business instead of just 1-3%.
So if that provider is Verizon, and they save the .01 cents say, 100,000,000 times, that means they're saving about $1,000,000.00. Right?