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Jun 9, 2014

Neustar Provides Update on Local Number Portability Administrator Selection Process

STERLING, VA, June 9, 2014 — Neustar, Inc. (NYSE: NSR), a trusted, neutral provider of real-time information services and analytics, today announced a development in the selection process for the local number portability administrator (“LNPA”) contracts beginning July 1, 2015.

On Friday, June 6, 2014, a copy of a confidential email dated April 28, 2014, sent by an aide to the chair of the North American Numbering Council (NANC) to the FCC was posted in the FCC docket and made available to the public. This most recent development is troubling given that the selection of the country’s next LNPA is an important FCC responsibility in the communications field. The process has also been marred by apparent leaks of confidential information, as well as substantive and other procedural problems.  

The email indicates the NANC recommends that the FCC award the next LNPA contract to iconectiv, an operating unit of Ericsson. Late Friday, notice of the filing appeared in the FCC online docket with a link to a copy of the confidential email available for a brief period of time; the notice was then changed to designate it as “Confidential” and the link to the email itself was removed. The reference to the filing was subsequently completely removed from the FCC docket.

The NANC is responsible for making a recommendation to the FCC regarding the next LNPA, however, the FCC, and not the NANC, has the authority to select the next LNPA. Prior to the release of the email, there had been no announcement that an operating unit of Ericsson had been awarded the LNPA contract.  As a result of the posting of the April 28, 2014 email, the NANC’s recommendation has been made public. The posting of the email violates the NANC’s request that its report to the FCC regarding its recommendation be kept confidential.

The NANC recommendation is by no means the end of the process.  Once the NANC recommendation and accompanying report are officially made public, we expect the FCC to undertake a thorough process to determine whether the NANC’s recommendation should be accepted and to bring what to date has been a flawed process to a proper, lawful conclusion.

FCC staff have advised Neustar’s counsel that the posting was an inadvertent mistake by a FCC staff member. Neustar understands the FCC intends to issue a Public Notice today, June 9, 2014, seeking public comment on the NANC’s recommendation.  

Friday’s mishap is significant and underscores the need for care in the LNPA vendor selection process, which Neustar believes has not been fully demonstrated to date. For example, Neustar firmly believes that Ericsson was, without explanation, permitted to submit its bid after the deadline had passed, and that Ericsson is prohibited by law from serving as the LNPA. Neustar has been one of a number of voices advocating that the FCC address the many procedural and substantive issues raised by the LNPA vendor selection process.

Neustar intends to continue to compete vigorously in the LNPA vendor selection process, and to advocate strongly that we are the logical choice to remain as administrator, which we believe is beneficial to the industry and consumers alike.

About Neustar

Neustar, Inc. (NYSE:NSR) is the first real-time provider of cloud-based information services and data analytics, enabling marketing and IT security professionals to promote and protect their businesses. With a commitment to privacy and neutrality, Neustar operates complex data registries and uses its expertise to deliver actionable, data-driven insights that help clients make high-value business decisions in real time, one customer interaction at a time. More information is available at www.neustar.biz.

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