Dial-on-Demand Routing


Dial-on-Demand Routing (DDR) is a networking technology that allows a network device to automatically establish a connection only when there is actual data to transmit. This mechanism helps in conserving bandwidth as the connection is not always active, but initiated when necessary. DDR is commonly used in situations where a permanent, continuous network connection isn’t necessary such as in small branch offices or remote locations.


The phonetic pronunciation of the keyword Dial-on-Demand Routing is “Dahy-uhl-on-Dih-mand Row-ting”.

Key Takeaways

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  1. Dial-on-Demand Routing (DDR) is a routing technique that brings network links up when they are needed and puts the link back down when the need is no longer present. It’s often used when network connections are expensive or rare – especially in connections that are billable by connection time, not by the amount of data transferred.
  2. DDR allows for cost-efficient use of network resources by controlling the utilisation of the network. The router will not open the network link until meaningful traffic is present. Typically, Common Management Information Protocol (CMIP) traffic, routing updates, and other “background noise” traffic, will be ignored and not trigger a callback.
  3. The configurations of DDR can be quite complex. Depending upon the network requirements, DDR can be set up to call and disconnect after a specified idle period, call and disconnect after transferring a specified volume of data, or stay connected indefinitely once called. These options provide the flexibility to match the network’s needs.

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Dial-on-Demand Routing (DDR) is a significant technology term in networking. Its importance lies in its inherent feature that allows a network to be automatically established and disconnected based on the demand, that is, the network traffic. DDR contributes to efficiencies in cost and resources because it eliminates the need for a continuously open, static connection, which can often be expensive and unutilized for significant periods of time. Instead, connections are created dynamically only when there is data to be sent, essentially optimizing the bandwidth usage. The importance of this feature becomes increasingly apparent in large-scale business networks where judicious management of resources is crucial for operational effectiveness and cost efficiency.


Dial-on-Demand Routing (DDR) is a significant innovation in networking technology that primarily serves to cut down unnecessary network costs and ensure efficient utilization of network resources. The core purpose of DDR is to establish a network connection only when there is a specific demand for data transfer, eliminating the need for constant connectivity thereby saving on expenses typically associated with permanent connections. Whether it’s a corporate setting where data transfers occur at certain slots in a day, or a private household where internet usage follows a set pattern, DDR is instrumental in creating a flexible and cost-effective communication environment.In practice, DDR comes to play in scenarios where networks are not required to be up and running at all times. Imagine a company with several branch offices. Instead of each office maintaining a round-the-clock connection to the central office or directly with other branches — which is both expensive and unnecessary — the company can utilize DDR. This way, the offices only establish a connection when there is data to be transferred, such as during inter-office teleconferences or for file sharing. Thus, Dial-on-Demand Routing serves to optimize connectivity, conserve resources, and reduce networking costs.


Dial-on-Demand Routing (DDR) is a routing technique wherein a network connection is established only when data needs to be sent. Here are three real-world examples for this technology:1. Remote Work or Telecommuting: In remote work setups, the employee’s personal computer can use DDR technology to connect to the company network. It dials the private network only when it needs to transmit information and the information is needed on the corporate network, which saves bandwidth and reduces costs. 2. Branch Office Communication: Businesses with multiple branches often employ DDR, where branches only dials into the corporation’s main network when data needs to be sent or retrieved. This can significantly reduce costs compared to keeping a dedicated line open all the time.3. Internet Service Providers (ISP): DDR is commonly used in homes or small offices which don’t require a continuous internet connection. The ISP connection becomes available to the subscriber only when needed and disconnects when no data is being transmitted, hence saving bandwidth and reducing the cost for users. In the above examples, Dial-on-Demand Routing aids in cost reduction and efficient bandwidth usage.

Frequently Asked Questions(FAQ)

Q: What is Dial-on-Demand Routing (DDR)?A: Dial-On-Demand Routing is a feature in a router that provides a dialed link to a remote site whenever there is traffic destined for that site. Once the traffic flow ends, the link will be automatically terminated.Q: How does Dial-on-Demand Routing work?A: DDR works by configuring a router to automatically initiate and close a circuit-switched session as transmitting data is required. It essentially dials a phone number to establish a connection with a remote site when there’s data to send, and hangs up when the data transmission is done, hence reducing cost.Q: What is the main advantage of Dial-on-Demand Routing?A: The primary advantage of Dial-on-Demand Routing is cost savings. Instead of having a permanent, always-on connection which incurs constant cost, a DDR connection only initiates when data needs to be transmitted, reducing the cost of maintaining a 24/7 direct line.Q: When is Dial-on-Demand Routing typically used?A: Dial-on-Demand Routing is typically used when a permanent, direct connection is not practical or cost-effective. This could be in a situation where data only needs to be sent intermittently, not continuously.Q: Can Dial-on-Demand Routing be used with any kind of network?A: DDR is most commonly used with ISDN networks. However, it’s also applicable to analog modems, asynchronous serial connections, Synchonous Data Link Control (SDLC), X.25, Frame Relay and Broadband Remote Access Server (B-RAS).Q: Is Dial-on-Demand Routing secure?A: By itself, DDR does not incorporate any specific security features. However, you can enhance the security for DDR by implementing techniques such as encryption, password and caller authentication.Q: Can Dial-on-Demand Routing support multiple concurrent sessions?A: Yes, DDR can be configured to support multiple sessions concurrently to manage the flow of traffic. This needs to be set up with appropriate configuration on your router.

Related Finance Terms

  • ISDN (Integrated Services Digital Network)
  • BRI (Basic Rate Interface)
  • Pri (Primary Rate Interface)
  • NAT (Network Address Translation)
  • PPP (Point-to-Point Protocol)

Sources for More Information

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