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O-Tel shakes up LCR market

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National telecom infrastructure service provider O-Tel Telecom has launched a new least cost routing (LCR) service to help the hundreds of stranded LCR providers in South Africa.

Part of the company's strategy is to offer a direct equivalent of LCR, reducing the termination costs and thus allowing the lowest cellular interconnect rate in the market.
Mohammad Patel, CEO of O-Tel Telecom, comments: "Since the LCR providers abruptly ended their services to their dealers, there have been many PBX resellers scrambling for some sort of solution to keep them afloat.
"During those months, O-Tel signed on a record number of LCR dealers onto our commercial-grade SIP trunking offering. This high quality voice service has major benefits and comes at a market related price.
"But the dealer still required a direct equivalent to the discontinued GSM-based service offering noticeably lower call costs.”
LCR Plus offers two packages. The first is the Enterprise offering where resellers sign on the client who, in turn, purchases airtime directly from O-Tel. In return for maintaining the client, the reseller gets 10% of the airtime purchased by the client.
The second is a Wholesale model which is proving popular with LCR resellers. The reseller is charged a standard cellular call rate of 82 cents to Vodacom and MTN which can then be billed on to the customer. This allows resllers to compete with new call rates from Neotel and Nashua Mobile while retaining the customer relationship.
“Resellers feel gutted at the moment," Patel says. “After years of loyal service to their service providers, they are dropped without any conscience. Many feel their business should have been on a much higher level after these many years.
"Well, it is never too late. The opportunity is knocking on their door to ensure that they do not face a repeat of what has transpired in the industry. It’s perfect timing for the reseller to step up now to compete with major providers whilst ensuring his client keeps saving tons of money on his communication costs