Telcordia CEO Says Neustar Growing ‘Desperate’ as LNPA Fight Continues

Because of the steps taken by Neustar, “only those few counsel for Telcordia with Top Secret clearances may view the unilaterally redacted portions of Neustar’s comments,” Telcordia said. “Neustar could have had any of the hundreds of lawyers and support staff in the five law firms it has now engaged work on drafting these sections of its comments, irrespective of whether those counsel and support staff have security clearances.”

"We are disappointed that Neustar is trying another desperate attempt to delay the awarding of the LNPA contract,” said Telcordia CEO Richard Jacowleff in an e-mail. If designated at the new LNPA, Telcordia “will provide a uniquely American product and service, which will meet the FCC’s security requirements, continue to enable 911 and other emergency services, and support the security and investigatory needs of law enforcement agencies, in addition to users’ operational and functional requirements,” he said. Jacowleff promised the transition will be smooth with “thorough testing for the support of law enforcement functions, in addition to the needs of other stakeholders including carriers.”

The letter to the FCC was written by John Nakahata of Harris Wiltshire, counsel to Telcordia and former FCC chief of staff. Also representing the company, according to the letter, is Venable attorney Jamie Barnett, former chief of the FCC Public Safety Bureau. Among the lawyers representing Neustar is Michele Farquhar of Hogan Lovells, former chief of the Wireless Bureau. Telcordia is a subsidiary of Sweden’s Ericsson, while Neustar is based in Sterling, Virginia.

Neustar fired back. The FCC’s Public Safety Bureau “has made clear that ensuring the security of local number portability administration is an overriding consideration for the commission, and it adopted the current national security protocols for handling documents to meet that goal,” a spokeswoman said. “Neustar strongly endorses the commission’s emphasis on national security. The security of the telecommunications infrastructure should not be sacrificed for the convenience of one of the parties.” Neustar will “work with the bureau to determine whether greater information can be made available to the public and the parties without compromising security,” the spokeswoman said, saying the company is an advocate of transparency and openness.

Rep. Mike Pompeo, R-Kan., a member of the Intelligence Committee and Communications Subcommittee, sent a letter to FCC Chairman Tom Wheeler Wednesday questioning the LNPA selection process. “Unfortunately” when a request for proposals was drafted by North American Portability Management “security requirements were barely mentioned,” Pompeo wrote. “I believe it is the responsibility of the federal government to ensure that issues involving national security and public safety are first and foremost in any decision regarding critical infrastructure.” The FCC shouldn’t make a decision until security considerations receive full attention, he wrote.

Several industry officials said Wednesday they expect the FCC to make a decision soon on whether Telcordia or Neustar will be selected, though it’s still unclear whether commissioners will vote on the choice or it will be done at the “bureau level.” “I think they want to get this done,” said a lawyer opposed to retaining Neustar as LNPA. “Why would you want to keep dragging this out forever? There’s just more pain for everybody.”

Financial records show that the U.S. LNPA contract brought in $437 million of Neustar’s 2013 revenue of $902 million. Neustar has seen its stock price drop sharply in the past year, from a high of $55.71 Aug. 2, 2013, to $28.61 at the close of trading Wednesday.