Neustar Calls for Rebid of LNPA Selection, Alleges Federal Law Violations
Neustar is petitioning the FCC for a declaratory ruling to throw out the North American Numbering Council’s recommendation that Telcordia be named the next local number portability administrator and that the LNPA selection process be reopened, alleging that NANC and a working group violated federal transparency laws.Neustar, according to a number of ex parte filings filed as recently as last Friday (see 1410220037), had been pressing the commission to allow it to continue serving as the LNPA. The company is arguing that it had been performing the function “flawlessly” and raising questions about Telcordia’s ability to not favor certain companies and questioning the adequacy of its plan.
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It was unclear whether Neustar will continue seeking the contract under the current proceeding, or if it's calling on the agency to scuttle it and start over. "The FCC has the authority to select whatever vendor it chooses," emailed a Neustar spokeswoman. "In its 2011 Order setting forth the process, the FCC reserved for itself the authority to make the final selection, which is why the NANC only provided a recommendation." Neustar’s attorney Aaron Panner, of Kellogg Huber, and the spokeswoman also would not say whether the petition is meant to set the stage for a court challenge should Neustar not win the contract.
"It is pretty clear that Neustar is trying to bolster claims that it would make in an appeal. But those claims would still be meritless," said Telcordia attorney John Nakahata, of Harris Wiltshire. "This petition is another meritless argument from Neustar in an attempt to delay a decision by the FCC so that Neustar can continue to earn nearly $1.5 million each day at the expense of carriers and consumers,” Telcordia CEO Richard Jacowleff said in a statement to us. “It is unfortunate that the incumbent continues to attack the North American Numbering Council simply because NANC recommended that Telcordia be the next Local Number Portability Administrator. The FCC has the full authority to move forward expeditiously to designate the next LNPA, and the industry has asked for a swift decision in favor of Telcordia."
In the petition (http://bit.ly/1nAUFOE), filed Wednesday, and not yet posted in docket 09-109 as of our deadline Thursday, Neustar alleges the Selection Working Group created to advise NANC on the LNPA recommendation, violated the Federal Advisory Committee Act by failing to create and make records publicly available, hold open meetings or maintain a balanced membership. The commission “cannot lawfully rely on the record generated by the NANC and the SWG in violation of FACA,” the petition said. Because “the record is devoid of sufficient information” for the commission “to make a reasoned decision once the tainted recommendations are removed, the Commission must now reopen the selection process in compliance with FACA and its own procedural rules,” the petition said.
Neustar, which has raised procedural issues throughout the process, contrasted the current selection process with one in 1997 that led to Neustar’s selection. In that case, the SWG included nearly 40 organizations “from all segments of the telecommunications industry.” This time, the SWG “has roughly a dozen members -- mostly large carriers,” and did not hold open meetings or make meeting minutes and internal documents publicly available, the petition said. Panner said the large carriers could be the main beneficiaries from any cost savings from selecting Telcordia, but any problems caused by the transition to a new LNPA would be borne by the entire industry.
Neustar cited a June 2013 NANC meeting, at which Kane “introduced the SWG by noting that ‘this is just an oral report, there is no document here,’" the petition said. One of the SWG’s three chairs “then provided a cursory oral summary of the SWG’s activities: ‘So we do not have a written document . ... We continue to collaborate and receive information from the FoNPAC as they are doing their review. We held a meeting yesterday on the 19th, a joint meeting with the SWG and the FoNPAC, and they will continue as they are reviewing the RFP responses to evaluate those and provide feedback to the SWG. That’s our report.’”
Feb. 26, 2014, the SWG sent NANC a confidential report recommending the next LNPA, the petition said. NANC “in a non-public meeting” March 26 considered the report and attached it in its recommendation of Telcordia to the commission, Neustar said. “The NANC’s adoption of the SWG recommendation, and the SWG reports that the NANC passed through without modification, are still not publicly available.” The documents, but no NANC or working papers, were made available to some participants under a revised protective order, the petition said.
An FCC spokesman declined comment. NANC Chairwoman Betty Ann Kane, also chairwoman of the Public Service Commission of the District of Columbia, was not immediately available.
“This is a really important aspect of telecommunications infrastructure,” and the process has had “flaws” in taking into consideration a number of factors the commission should take into account “as decision makers responsible for ensuring a reliable” telecom system, Panner said. Neustar and Telcordia have been battling before the FCC over Neustar’s claims that Telcordia does not have a plan for protecting the safety of the numbering system, and that Telcordia’s parent Ericsson has business relationships with wireless carriers it could favor as the LNPA. Telcordia has responded that it can carry on the LNPA’s functions more cost-effectively, that it's working on safety precautions and would handle any issues during contract negotiations.