Seeking Alpha

Neustar -7.2% AH, Ericsson +2.6% on contract e-mail

  • An April 28 e-mail (just made public) from an advisory group suggests Ericsson (ERIC) is close to winning a major phone number contract currently held by Neustar (NSR).
  • The 5-year contract covers the transfer and management of 500M+ phone numbers, and will kick in after the current contract expires on June 30, 2015.  The FCC has the final say on who wins it.
  • Bloomberg observes Neustar has generated $3B+ in revenue from number-switching, which it has exclusively handled since 1997.
  • Ericsson has been trying hard to grow its telecom software/service exposure, and thus cut its dependence on a slower-growing, relatively low-margin mobile infrastructure market.
  • Ericsson bought top telecom billing and provisioning (OSS/BSS) software vendor Telcordia in 2011, and has made complementary acquisitions since. This week, it rolled out an analytics platform for its OSS/BSS solutions.
From other sites
Comments (4)
  • WhitneyB
    , contributor
    Comments (482) | Send Message
     
    Anybody have a link to the actual e-mail; the Bloomberg story just says it is posted on a U.S. website (thanks a bunch, Bloomberg)?
    6 Jun 2014, 05:58 PM Reply Like
  • ApresSkiBrewer
    , contributor
    Comments (4) | Send Message
     
    Ditto. Just about to ask the same question on the Bloomberg site. Can't seem to dig it up with any search features.
    6 Jun 2014, 11:26 PM Reply Like
  • Silvio65
    , contributor
    Comments (17) | Send Message
     
    It looks like the email had appeared briefly on that website and then has been removed. Smells like stock manipulation to me....
    7 Jun 2014, 07:52 AM Reply Like
  • abdullah999
    , contributor
    Comments (436) | Send Message
     
    http://bloom.bg/1pSG6W9

     

    "The e-mail from the adviser to Kane said that numbering authorities need “ample time” to “negotiate the final terms and conditions in the contract with iconectiv,” the name used by the Ericsson Telcordia unit vying for the contract."

     

    If this is true, $NSR should be trading a lot lower than $24.8. The email seems to suggest the contract will be awarded to Telcordia exclusively. I'm not sure how unfair the bidding process was, except that Neustar's bid seems so uncompetitive that the FCC didn't even bother following up!

     

    Hopefully, the consumer comes out ahead!
    8 Jun 2014, 09:42 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs