Key Regulator, Telcordia, NAPM Seek Conditions on Neustar Privatization Plan
A prominent regulator and Telcordia raised concerns about Neustar's planned privatization and sought FCC conditions. North American Portability Management (NAPM) said it wouldn't object, subject to two conditions. Neustar, which administers various numbering and pooling mechanisms, asked the FCC to…
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approve its planned sale to Aerial Investors, a group formed by Golden Gate Private Equity (see 1702010033). Betty Ann Kane, chairman of the D.C. Public Service Commission and the North American Numbering Council, offered no view on Neustar arguments for FCC approval based on the company's statement it will continue to be neutral in its administrator duties. "However, I am concerned that Neustar has not provided any evidence in its Ownership Request to substantiate its claim that the new ownership should be approved 'because the nature of Neustar’s business and its day-to-day management will not change,'" said Kane in comments posted Friday in FCC docket 92-237, saying she was speaking solely for herself. She said the new ownership apparently could benefit financially if the transition from Neustar to Telcordia/iconectiv as local number portability administrator (LNPA) isn't completed by a May 25, 2018, target. She asked the FCC to condition approval on Neustar (1) formally committing to complete the transition by then, subject to penalty, and (2) within 30 days of approval retaining an independent auditor to file monthly reports regarding company compliance with iconectiv and NAPM requests on implementation steps. Telcordia commented that Neustar failed to provide sufficient detail to enable the FCC to assess neutrality and national security implications, particularly since the government of Singapore, through Hux Investment, will be an indirect owner of up to 37.5 percent of Neustar. Also noting concerns about the new ownership's financial incentives, Telcordia urged the FCC to ensure Neustar "will be committed to completing, and cooperating with, the ongoing LNPA transition, according to the schedule established by the Transition Oversight Manager," PwC. NAPM commented it has no objections, if "Neustar remains fully subject to its contractual obligations with the NAPM" and the commission "ensures that Neustar remains subject to all of its current regulatory obligations, including all of the FCC’s current neutrality requirements." A Neustar spokesman emailed that the company "agrees with the NAPM which only makes one request of Neustar to fulfill its neutrality and regulatory obligations" and looks forward to addressing further specific issues "in our reply comments to the FCC in two weeks.”