Local Reciprocal Compensation (LRC)

Improve Local Reciprocal Compensation Traffic Imbalance Management with ASC Solutions

Improve Traffic Imbalance Management and Increase Revenue Recognition

Local Exchange Carriers (LEC) -- both Incumbents (ILECs) and Competitive (CLECs) -- and other communication services providers, unlike companies in most other industries, buy and sell extensively from one another. In many cases, the single largest purchase for many of these companies is services procured from their competitors. Given the volume of transactions and the number of different systems that track information related to these transactions, ensuring that the services listed on an invoice have actually been ordered and are currently in use is a significant challenge. For LECs, the key is effectively managing traffic routing over each other’s network trunks.  The LEC that originates less traffic than it terminates may be entitled to compensation, this is called Local Reciprocal Compensation (LRC).

Over the course of our close to 25 years in the contract management business, ASC has worked with major LECs to automate, simplify and streamline their contract management needs. ASC ContractsTM, our contract lifecycle management (CLM) software, effectively helps LECs reduce paperwork and transactional costs, improve account management, optimize network utilization and increase profits.  ASC Contracts' LRC application specifically focuses on traffic imbalance management relative to Local Reciprocal Compensation (LRC) between LECs.

LRC Business Challenges

The processes used to capture, analyze and process traffic imbalance, including billing and dispute management, between LECs as well as Sharees (those sharing a LEC's infrastructure), are often manual, complex and labor intensive. In many cases, the traffic imbalance capture and processing is not even being performed or it is being performed incorrectly.

ASC’s LRC Management Module

ASC’s Local Reciprocal Compensation (LRC) management module provides carriers with an automated application to:

  • Collect, capture, store and analyze (process and summarize) imbalance traffic data (e.g., SS7 records) with a proven and automated methodology to produce accounts payable invoice validation information and reports, accounts receivable invoices, network optimization reports
  • Accurately and verifiably invoice other LECs for the traffic imbalance
  • Validate invoices and dispute traffic imbalance charges
  • Capture, manage and report on historical billing and validation data (e.g., SS7 call records, accounts payable/receivable and network optimization reports)
  • Run regular (e.g., weekly and monthly) reports from the database where data (e.g., SS7 records) is loaded and summarized 
  • Uncover lost revenue/compensation opportunities
  • Perform all of the above on behalf of another LEC or Sharee

ASC Solutions Best Practices Framework

In solving any customer's contract management and business process management challenges, ASC's best practices framework includes:

  • Identifying key cross-organizational stakeholders (e.g., Product Manager, Sales, Provisioning, Billing, Customer Care, etc.)
  • Gathering and documenting business processes and requirements
  • Prototype definition, field trial, refinement and buildout
  • Training the teams (e.g., train-the-trainer, one-to-one, one-to-two, team and online)
  • Deploying hosted and managed solutions

Quick ROI

  • Turn key solution
  • Speed of implementation
  • Proven return on investment (ROI)
  • Easy-to-use web-based application
  • Scalable and configurable

Operational Efficiency, Cost Reduction and Revenue Generation

Benefits of deploying the LRC solution include:

Cost Reduction and Revenue Generation

  • Allows for successful invoicing of LEC/Sharee traffic imbalances
  • Allows LEC/Sharee to successfully validate and dispute carrier invoices
  • Allows for analysis of exchanged traffic to determine benefits of LIR/exchange rating

Operational Efficiencies

  • Eliminates manual network studies required to dispute invoices
  • Business rules ensure integrity of network configuration
  • PDF invoices are easily generated and ready for mailing on the required cycle (e.g., monthly) per LEC
  • Barcoded reports and invoices ensure authenticity and accuracy
  • Enables easy adhoc and scheduled reporting (usage, TCIC, installed trunks usage, billed minutes, etc.)

ASC LRC traffic imbalance management solutions help telecoms better manage accounts and overall network operations, reduce costs and recognize new revenue opportunity.

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