Neustar Key Contract At Risk From FCC Draft Order

Neustar Inc NSR shares plunged Wednesday after the Federal Communications Commission issued a draft order that would result in the loss of nearly half the company's business.

Neustar changed hands recently at $21.84, down 13 percent.

For 17 years, Neustar has administered a service that enables phone-number "portability" for wireless users who switch providers.

The contract, with an industry consortium authorized by the FCC, amounted to $474.8 million last year, or 49 percent of Neustar's revenue.

The current contract expires June 30.

If adopted, Wednesday's order from the FCC would result in the start of contract negotiations with Teleconcordia, a unit of Sweden-based Ericsson ERIC.