NeuStar has announced the amendment of its contracts with the North American Portability Management LLC (NAPM) under which NeuStar provides telephone number portability services in the U.S. through the Number Portability Administration Center (NPAC).
The amendment provides NeuStar's NPAC customers a new pricing model with cost savings and predictability, and encourages the use of innovative NPAC services. For NeuStar, the new amendment provides certainty of revenue and growth after 2009. Most important, the amendment will enable NeuStar to become as essential in the emerging world of IP communications as it is today in the world of voice communications, said the company.
Under the amended contracts, the pricing model for use of existing NPAC services changes from one that is transaction-based to an annual fixed fee with escalators. The fixed-fee provisions of the amendment allow NeuStar's NPAC customers to use existing fields and functionality within an established range of transaction volumes. As new functionality is introduced, usage will be priced incrementally to the fixed fee.
"This contract amendment provides meaningful financial benefit to our customers while significantly enhancing NeuStar's future," said Jeff Ganek, NeuStar's chairman and chief executive officer. "Our new contract paves the way for the industry to benefit from the same efficiency and reliability NeuStar delivers for routing and managing traditional voice calls as our customers introduce new, innovative, and increasingly complex IP traffic. We believe the NPAC will prove to be as essential to IP communications in the future as it is to voice calls today."
NeuStar is a provider of essential clearinghouse services to the communications and Internet industries.
