Re: [ga] Lesson for ICANN: Neustar lowers telephone database management costs

[Jeff Williams <jwkckid1@xxxxxxxxxxxxx>]

George and all,

  I believe ICANN does see through the FUD spread by incumbent
registries, but finds it advantageous to "go along" as in doing so
ICANN can collect more fees from registries for perks, junkets,
ect for it's staff and Bod members to enjoy at the expense of
registrants/stakeholders/users.

George Kirikos wrote:

> Hello,
>
> In a time when monopoly registry operators are trying to raise prices,
> it's interesting to note the following news stories about Neustar and
> its telephone database management pricing:
>
> http://www.chron.com/disp/story.mpl/ap/fn/4205048.html
>
> "The contracts have been extended by 48 months to June 2015. Pricing
> remains unchanged at $1.05 through the rest of the year, the company
> said, and in 2007 transactions will cost 91 cents each regardless of
> volume. Beginning in 2008 until the contract expires, transaction rates
> will range from 95 cents to 75 cents depending on volume."
>
> "NeuStar said it expects transactions to grow by at least 25 percent
> under the contracts, resulting in about $30 million in first-year
> savings to the industry."
>
> http://www.lightreading.com/document.asp?doc_id=104396
>
> "You can?t complete a telephone call in the U.S. without using
> NeuStar,? Ganek says. ?We cannot charge monopoly rents; we have to
> share the benefits of fast volume growth with our industry.?
>
> "?With the NP [number portability] transaction pipeline now locked up
> until 2015, NeuStar can redeploy assets and focus on next-gen growth
> initiatives that should expand the company's international presence,
> which accounted for only 3 percent of revenues in fiscal 2005.?
>
> Thus, it is perfectly consistent to have renewals of contracts with
> price cuts, and allow the registry operators to have enough money to
> invest in infrastructure, yet share the benefits of economies of scale
> with consumers. ICANN's feeble negotiators seem to have ignored this
> economic reality, because they fall for the FUD spread by incumbent
> registries.
>
> You can't fault registry operators for trying to get a price increase.
> But, ICANN should see through their smokescreen, and be negotiating
> price cuts. There's no "presumptive renewal" for Neustar in these
> deals, either. As noted in the secondard link, one analyst felt
> possible competition from VeriSign and Telcordia was keeping prices in
> check.
>
> Sincerely,
>
> George Kirikos
> http://www.kirikos.com/

Regards,

--
Jeffrey A. Williams
Spokesman for INEGroup LLA. - (Over 134k members/stakeholders strong!)
"Obedience of the law is the greatest freedom" -
   Abraham Lincoln

"Credit should go with the performance of duty and not with what is
very often the accident of glory" - Theodore Roosevelt

"If the probability be called P; the injury, L; and the burden, B;
liability depends upon whether B is less than L multiplied by
P: i.e., whether B is less than PL."
United States v. Carroll Towing  (159 F.2d 169 [2d Cir. 1947]
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