Lucrative contract at risk for Neustar
Federal regulators have yet to award the contract, but an advisory group to the Federal Communications Commission has reportedly recommended that a $450 million contract be awarded to Telcordia, a subsidiary of Swedish telecom giant Ericsson.
The decision would impact Neustar's exclusive technology that enables consumers to keep their numbers when they buy a new phone or switch carriers.
The current contract is set to expire June 30, 2015.
Ericsson has recently made the decision to go after lucrative government contracts and has trimmed some areas of the company to position itself to do that.
"Since 2005, providers have brought to the Commission’s attention the escalating costs of the Number Portability Administration Center (NPAC) databases.
The costs of the NPAC databases have continued their growth trend and have more than doubled since then," according to a letter filed to the FCC June 9 by the United States Telecom Association.
Revenues for Neustar were listed at $902 million last year, so losing the contract could mean a nearly 50 percent decrease in revenues in 2016.
Neustar has held the contract for 18 years, winning the bid mostly uncontested every year until this year.
The company has tried to diversify its interests recently by buying the .biz and .us domain names, as well as the world-wide registry gateways for China (.cn) and Taiwan (.tw).
Be the first to post a comment!
Post a commentCommenting is not available in this channel entry.
Comments express only the views of the author and do not necessarily reflect the views of this website or any associated person or entity. Any user who believes a message is objectionable can contact us at email@example.com.
- EDITORIAL: Fumblerooski on Metro
- The cost of Facebook: Loudoun economic development dept. spends $20K per year on social media site
- Wegmeyers, Fabbioli partner to produce first sparkling strawberry wine
- GOP gubernatorial hopefuls play nice at first debate
- Loudoun duo hopes to inspire a love of the arts among young people
|The Loudoun Times-Mirror
is an interactive, digital replica
of the printed newspaper.Click here for all e-editions.