Firms battle over Federal Communications Commission contract to play traffic cop for phone calls, texts

Security questions arise as U.S. government considers choosing new monitor for Number Portability Administration Center.
BY ELLEN NAKASHIMA, The Washington Post Published: August 12, 2014
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— Influential lawmakers are urging the Federal Communications Commission not to ignore national security as it prepares to choose a company to play the critical role of traffic cop for virtually every phone call and text message in North America.

At issue is the security of the most significant cog in the telecommunications network that most Americans have never heard of.

The Number Portability Administration Center, or NPAC, handles the routing of all calls and texts for more than 650 million U.S. and Canadian phone numbers for more than 2,000 carriers. If numbers are scrambled or erased, havoc could ensue. The FBI and other law enforcement agencies query the database every day, or 4 million times a year, in the course of criminal and intelligence investigations to determine which phone company provides the service for a particular number.

A major concern, national security experts say, is that a foreign government intent on learning which of its agents the United States has under surveillance might hack into the database to see what numbers the FBI or another security agency has wiretaps on.

Since 1997, a Sterling, Va., firm, Neustar, has held the exclusive contract to run that system, which was established to let customers change their carrier but keep their number.

Now, however, a rival firm owned by Sweden-based Ericsson is poised to win the contract — which last year brought in $437 million, or nearly half of Neustar’s 2013 revenue of $902 million. The firm, Telcordia Technologies, put in a bid substantially lower than Neustar’s, and an FCC advisory panel has recommended that the commission pick Telcordia.

In a letter sent Thursday to the FCC chairman, Rep. Mike Rogers, R-Mich., and Rep. Dutch Ruppersberger, D-Md., the chairman and ranking Democrat of the House Intelligence Committee, urged the commission to consult the FBI before picking a firm.

The lawmakers say they are concerned that the selection process “will not adequately address the inherent national security issues involved in this database.” Rogers and Ruppersberger, who said they are neutral on which company should win, urged the FCC to include security requirements.

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