NeuStar Pricing Change

It 'amends' a contract to give the industry savings.
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NeuStar

(NSR)

extended by four years its U.S. telephone number portability contracts.

But the company said it amended the contracts' pricing for future years, resulting in what it called "$30 million in first year savings to the industry." NeuStar declined to offer 2007 guidance.

The Sterling, Va., clearinghouse service provider said its deals with North American Portability Management LLC now run through June 2015. The company said existing pricing remains unchanged for 2006, with a fixed rate in place for 2007 and new formulas in place thereafter.

"Once again, increasing transaction volumes driven by industry trends and the resulting demand for NeuStar services have enabled NeuStar to pass significant cost savings back to the industry," NeuStar said. "We are pleased that NAPM and NeuStar have successfully collaborated on new contractual terms and conditions, as we have on two previous occasions."

NeuStar said it's "premature to provide specific 2007 financial guidance at this time," but added that it remains "committed to attaining our growth and profitability objectives."