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NeuStar has competition for lucrative government contract

The Washington Post reported Feb. 16 that there is a chance Sterling-based Neustar Inc., an analytics and real-time information provider, might have competition for a $450 million contract that the company has won – mostly uncontested – in the past.

According to the report, Telcordia has put in a competitive bid for the contract, which allows cellphone users to take their phone numbers with them if they change service providers, from Sprint to Verizon, for example.

Telcordia claims Neustar submitted a more competitive bid after the deadline, according to the Post report.

Neustar, behind only Orbital Sciences Corporation, has the most revenue of any publicly traded company in Loudoun, taking in $902 million in 2012.

A large chunk of that revenue could be in jeopardy if Telcordia, a company owned by Ericsson, wins the contract.

In past history the contract has not been decided through a competitive bid, so Neustar has held the contract since winning it 18 years ago.

The most recent contract is slated to expire June 2015.

After Telcordia announced its intentions to file a bid, Neustar met with the FCC – something that drew the ire of Telcordia.

As part of a document filed with the FCC, Telcordia wrote, "If what Neustar has done is to unilaterally seek to alter the terms of its Best and Final Offer, that would be improper and should be disregarded entirely."

Telcordia, an American-based research and development company, was bought in 2011 by Ericsson, a Swedish multinational communications technology company, for $1.15 billion.

According to a reporter from Bloomberg, Ericsson recently reported profit margins that beat analysts’ projections. The company has cut jobs and gone after more lucrative contracts.

A decision on the contract has not yet been made.

In recent years, to diversify earnings the company has moved into analytics and manages .biz and .us domain names, as well as the world-wide registry gateways for China (.cn) and Taiwan (.tw).


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