Reclaim Lost Revenue: How to Get More Revenue from Your Caller Name Storage

 
 

Transcript:

Good afternoon, and welcome today's webinar, Reclaim Lost Revenue, How to get More Revenue from Your Caller Name Storage, sponsored by Neustar. My name is Rich Karpinski, editor-in-chief of Connected Planet.

Now, as part of this transition that operators are facing today, operators are targeting both cost reduction and new hide margin services that can increase revenues. Both of these can directly increase profitability. However, there is another area where profitability can be substantially improved with minimal investment, and that's by implementing a proactive, caller name storage revenue assurance strategy. And that's what we're going to hear about today.

Now, the communications market is one of the most competitive sectors in the commercial world. As economic pressures increase, many operators are moving from a growth-based model-- where success is measured in the number of subscribers or RPU to more of value-based model where success is measured by margins and profitability.

Now, to get started, let's take a look at today's agenda in a little more detail. First, I'll have a brief discussion with John Ayers, VP and general manager of the Communication Service Provider Group at Neustar. We'll talk about the CNAM landscape and how it's changed over the past two decades.

We'll also hear in depth from Mike Sullivan, former chief financial officer at TARGUSinfo*, to get the CFO point of view on how you could increase your CNAM storage's ability to improve revenue management and increase profitability.

And finally, you'll learn about an audit offer that promises to help you increase your incremental CNAM storage revenue by as much as 50%. Now, that is about half of your revenue that you're leaving on the table. For instance, if your current revenue is $720,000, you could increase it to over $1 million.

But before we dive any further into our main part of the presentation, I'd like to welcome John Ayers, vice president and general manager of the Telecom Solutions Group at Neustar to talk briefly about CNAM storage landscape and how it's changed over the past two decades.

John, thanks for joining us today.

Hi Rich. How are you?

I'm pretty good, thanks. So John, we've had a chance to talk a little bit, obviously, leading up to this. And I think if you look out on the internet and sort of searched for telecom webinars, maybe a Google search, I think you'd find a lot of interesting topics and challenging issues facing telecom professionals today. But I doubt you'd see much on caller ID and CNAM storage, in particular. It's a very unique topic. So maybe to get started, share with us a little bit about why this particular topic is, you think, so interesting.

Sure, Rich. I'll do that. First off, thanks to everyone for joining us today. And to some degree, Rich, you've kind of hit the nail on the head already as to why this is an interesting topic. It's about money. And in fact, it's about somewhat found money.

We've learned from many of our customers, telco customers, that they have a valuable asset that has been and is being under monetized. And probably has been for the last several years. And that asset is simply the subscriber listings that they make available for other telcos to query as part of the caller ID or CNAM service delivery. That bucket of revenue just generically is known as CNAM storage revenue.

For years, there were so few changes in the overall CNAM ecosystem that storage agreements that had been negotiated by telcos could literally be put in a drawer somewhere gathering dust, auto-renewing, and, in fact, providing significant and consistent revenue for the telcos who'd negotiated those agreements.

But changes in the last few years to the overall CNAM ecosystem have resulted in a decrease in the overall revenue many telcos are receiving based on the terms in those existing agreements. So for years, many of those attending today know that Neustar has helped telcos cut costs on their inbound CNAM service.

And now, we're in a position, we think, to help reclaim a lot of that lost storage revenue-- in many cases, as you pointed out, reclaiming as much as 50% incremental to what they're receiving today. So that alone should be of interest, or at least we hope it is, particularly given that there's very little work associated with recapturing this revenue.

Separately, just in many discussions we have with prospects and customers and others in the industry about CNAM and CNAM storage, we learn that while it does seem to be a pretty straightforward industry without a whole lot of moving parts, there is considerable confusion over some of the more basic components of it. And we're hoping that this type of forum will help clarify some of those misunderstandings.

Great. Yeah, exactly. I've often heard the term network CNAM whenever CNAM was discussed. It wasn't always clear exactly what the distinction was. So can explain a little bit to me about what exactly is network CNAM and how it relates to our discussion today?

Sure. First off, I'd probably change that term slightly to actually read, network reciprocity CNAM, with reciprocity being the key word for reasons that will become apparent. But-- so from 1984 or so, when CNAM was first deployed as a commercial service, until about 1999 when Neustar entered the CNAM business, caller ID worked pretty much one way and one way only.

So in that network reciprocity CNAM model, any telco offering caller ID or CNAM to its subscribers used a query over SS7 network to query what were referred to as CNAM storage databases maintained by other telcos in order to get the names of the calling parties for display to the called party. And that's hopefully represented in this slide that you're all seeing now.

So to simplify, to give you an example, if your subscriber was getting a call from a Verizon subscriber, you would query the Verizon CNAM database to access Verizon landline names. Similarly, would query AT&T's CNAM database to access AT&T's subscriber data. VeriSign, or at least the relevant assets that are now owned by TNS, also stored names for other telcos that didn't want to maintain all the interconnect agreements and other elements of the storage platform but still wanted to participate in the CNAM ecosystem.

They wanted to monetize their subscriber listings and keep support issues down. Because their customers were expecting to see names show up as a part of the caller ID service. So if your subscriber was getting a call from a subscriber of one of those telcos stored at VeriSign, for example, you would query that CNAM storage database.

So reciprocal querying was and is the basis of that network CNAM ecosystem. All the telcos had interconnect agreements and queried each other for the data. They tended to charge high query rates. And the model was particularly disadvantageous to smaller telcos and startups, who, because they had a smaller startup base receiving calls would by nature launch more queries to get data from the larger telcos than they received.

And Neustar helped disrupt that model led by some of our early customers starting in about 1999. And Alltel, which is now Windstream, obviously, wanted to maintain a high level of quality for its CNAM service but also wanted to save money and avoid sending money to its competitors, which, as I've hopefully just explained, is what the network reciprocity model does. You are querying your competitors and sending them checks.

Our model versus the reciprocity model is what we refer to as the repository model. And that means when one of our telco customer's subscribers receives a call, rather than launch a query to a CNAM storage database out on the network, we support queries from our data repository which contains over 410 million records associated with telephone numbers. And therefore, we minimize the number of queries that go to those CNAM storage databases where the rates are higher.

So we're able to accomplish both of the objectives of providing a high level of coverage and accuracy while minimizing costs. Simply put, we license authoritative data in bulk and sell it by the drink, or per query. And so we're able to offer the service at reduced cost.

So with our model, we help our customers avoid paying the high query rates associated with CNAM storage. And ironically, this also resulted in a reduction in the query rates throughout the CNAM industry. And as Mike Sullivan walks through these relevant equations, you'll see that that's one key reason companies have seen a reduction in their storage revenue, and as we're suggesting, need to reevaluate their storage agreements and their storage situations.

OK. All right. Thanks John. So one more big picture question as we move forward-- so what do you see as the overall future of caller ID as we move forward?

OK. Well when it was first deployed in the mid '80s, caller ID was, I think, viewed as a competitive advantage and kind of a differentiating service. In fact, to the extent that it commanded monthly service fees in the range of $8 to $9 a month. Over time, I think we all know this has become more of a cost of doing business for most telcos as subscribers have begun to expect caller ID in many instances. They expect dial tone, 911, and caller ID, and now call forwarding and other features like that.

MSOs and CLECs have kind of accelerated this trend by bundling it aggressively. So you could argue that it has, to some degree, become something of a commodity. Ironically though, we're seeing caller ID reemerge again as an important differentiating service. I think we see consumers enjoying relatively new services such as caller ID to the PC and the TV. Comcast, for example, is really highlighting its universal caller ID as a differentiating service.

So as service providers offer these additional services and functionality-- things like address book and contact management services-- caller ID, oddly enough, is many times the launch pad for those services. Because it's the key piece of data that needs to be entered for those services to be effective.

So there's an even higher need for a higher level of coverage and accuracy now with caller ID than there ever has been. So as this slide points out, if your subscribers get annoyed when they see "unavailable" or "unknown" or "out of area"-- which are some of the responses you get with a partial CNAM service-- they may be particularly annoyed or at least not find the service very helpful when those tend to show up in living color in the middle of their baseball game.

They may also find it annoying when there's no name available or a wrong name available when they try to add that data into an address book or content management system. So we actually see heightened emphasis and need for real, quality, authoritative caller ID services like the one Neustar provides.

Yeah, that's definitely not something you want to pop up on a big screen, right? Absolutely.

Right.

OK, John. Thanks very much for setting the stage here today. That was very helpful and informative. So let's move on, though. I'd like to introduce Mike Sullivan at this point, the former chief financial officer at TARGUSinfo. Now, Mike has over 20 years of strategic and operating experience across a range of industries. His expertise includes a comprehensive understanding of corporate finance and a hands-on experience with both public and private market securities offerings.

Mike, thanks for your time today. I'll give you the floor. Thanks. All right. Thanks very much, Rich. And also thank you John. And most of all, thanks to the attendees who are on the line today. I know you're all busy executives. And we appreciate your taking time away from your busy day to spend some time talking about this topic. As John said earlier, we will try to keep it brief, but we will try to keep it pithy and make sure you get what you need out of this.

This is one of my favorite topics in the world as a CFO, as you might imagine, saving people money. So the story that I'd like to share with everybody today is really a very, very simple story. And John laid it out earlier. But let me reiterate it, namely that you're probably leaving money on the table under your existing CNAM storage contract. And I'd like to take the next couple of minutes talking about why that might be the case and what you can do about it in the meantime.

Now, I don't need to tell everybody who's on the call today it is getting to be a tougher and tougher economic environment and a tougher and tougher competitive environment out there. We're in a world where every penny of RPU really matters to our customers. Prices are falling. There's competition in market share left and right. We're seeing mergers and acquisitions going on, one just today in the industry. And as a result, everybody really need to be very, very aggressive about fighting for every single dollar you have coming to you. And we, at Neustar, can help with that.

We have a number of great success stories where we've helped customers with both sides of the CNAM profit equation. The cost side, John talked about earlier, what we've done to shake up the industry and lower the per query rates for your inbound CNAM. And then the thrust of what we're going to talk about today, the revenue side of things.

By leveraging our relationships with the storage partners out there and making sure you get top dollar for the use of your own subscriber names out there on the network. And as we've discussed, and as we've seen in the real world on the ground, the incremental increase in revenues for our customers can really, really be quite substantial.

So let's get into it. I've tried to put together a very quick executive summary slide here. I always like to say when I give presentations, the one slide, this is what you need to know if you don't take away anything else from the presentation today.

As financial professionals or business line managers, we really all have a duty to our stakeholders to maximize the value of all the assets that the corporation has. And subscriber names are another asset. And they're no exception to this.

So if we have CFOs on the line or other financial or business line executives, you have to manage your cash. You have to manage your accounts receivable. And subscriber names are just like any other asset to be optimized inside the corporation.

Secondly, there are a lot of legacy deals out there. And those legacy deals really haven't been dusted off in a long, long time. And many of those deals, quite frankly, are not good deals. They're old deals that offer sub-optimal terms to you, as the owner of your subscriber databases and the names that are in those databases.

Maybe the rates that you'll receive per query in those databases are too low. Maybe there's a too low revenue share. And all of this happens because these deals and maybe have been lying around for some time. They were cut years ago. As John said, maybe they've auto-renewed. Maybe you didn't cut the deal. Your predecessor did, or your predecessor's predecessor cut the deal. But it's time to address this problem.

If you work with us, we can help you really locate and mine this gold, if you will, that's buried in your business. We have relationships with large storage providers who have these contracts with the telco operators. And they pay more than competitive rates for your data.

In addition, these storage providers really are not stingy about querying the CNAM databases-- your CNAM databases-- as part of the service they offer their own customers. So you're assured of getting the highest number of queries against your listings. We'll talk about that in a minute.

And then finally, very important, these partners offer very aggressive revenue share percentages. So you won't leave a single penny on the table if you choose to work with Neustar and its storage provider partners. As John put it very well at the top of the presentation here today, it's very much found money, and we can help you find it.

Finally, I say we'll do the heavy lifting for you. You need a Sherpa guide through this process. You're busy. And we know that if this process becomes a distraction to you and your team, we're not going to get your business. You're going to take your business elsewhere. But we do this for a living. We wake up every day thinking about these problems and how we can help our customers with these problems.

And we know how to do this. And we have streamlined our processes to make sure that this is as hassle-free as possible.

So we'll talk in a few minutes. We'll just a little bit of data from you, very, very readily available, very easy-to-provide data, get us started, and we'll be on our way.

So the next slide here, the one called Storage Revenue Statement, this is an example, if you will, of a revenue report that you might get from your current storage provider. Now, sitting here, I can't hear you through the internet. But I suspect some of you are chuckling right now. Because I know the real reports aren't quite so simplified as the nice one I've put up here on the slide.

The real reports are many, many pages long. I think they often can be used as a door stop once you're through with them, because they're many inches thick. But bear with me here, by way of example. If you look at the sample report, you can see that there is a number of queries or dips, if you like, that have been made against your subscriber names.

And in this example, there are five other telephone companies who are querying your database. And you can see the number of times they queried you, the price per query that those phone companies paid to access your data, and the revenue that was generated From accessing your data.

So here, if you look in the lower right hand corner of the slide, there's a total of about $172,000 roughly, that was generated from accessing your names. However, what you don't see here is one last step is that the storage provider who you're working with then keeps a percentage of that $172,000 as their piece of the action, if you will.

And that percentage might be really, really low or really, really high. And that's a function of the deal that's been cut. And if it's low, obviously, that's not a good thing for you, the owner of the names.

And if it's high, I'm sorry-- if you're lucky, it's a low percentage that they keep. If you're not so lucky, it's a high percentage that they keep. So we want to work with you to make sure that we can make that percentage of revenue share as low as possible.

So let's move on then, and then take a look at a quick case study, or sorry, an equation here. Then we'll look at a case study. The equation that you see on the screen now is really a very, very simple a times b times c kind of equation, but it really explains where your revenue comes from and what's driving that revenue.

And you see on the left side of the equation, the storage revenue. And it's really the product, if you will, of three terms. The price, what we call the price, times the volume, times the revenue share.

So I'd like to talk now for the next minute or so and fill you in on what each of these terms in the equation represents and why you need to care about all three of them. Because they're really going to drive that total number on the left hand side.

First, the price that you see there. This is the average price, if you will, that's paid to your storage partner every time one of your listings gets queried. And these rates will vary from telco to telco, and they're negotiated by the large storage partners that are out there.

Then, the second term in the equation marked volume is the volume of queries that generates revenue for you. Now, in theory, every time one of your customers, one of your subscribers, makes a phone call, there's an opportunity for you to be paid for the use of that name on the network. However, it usually isn't that simple. Because there are a lot of things that conspire to drive that number down so that you only get paid some of the time.

And some of those times can't be helped, but some of them can. And let's talk about those. So what might drive that number down, that volume term? Well first off, remember that there are a lot of people in this world who don't have caller ID or don't take advantage of CNAM services that are out there on the network.

So if one of your subscribers makes a call to somebody else who doesn't have caller name on their end, then there's no way you're going to get queried for that call. And there's no way you're going to get paid for that query.

Furthermore, some of your subscribers are going to be making calls to wireless phones. So in general, there's not going to be any query taking place on the back end there as well. Although as we've seen in the industry, that's starting to change.

So I think of those things as sort of leakages that come out of the gross number of calls that your subscribers make that drive down this volume term in the equation. But besides these leakages that I just talked about, there's some other things that drive down this term that are a little more subtle.

So, for example, not all phone companies that are out there receiving your subscriber's phone calls, not all of them choose to provide CNAM to their own customers from your subscribers. They might just pop up "out of area" or something else on their caller ID box for their customer. When they do this, your database-- your data-- doesn't get queried. And you don't get paid for those names.

And what in fact is going on in the industry is we are working with storage providers who, in turn, work with companies who've agreed to query and pay for the maximum number of names that are out there on the network. So that enables us to help you keep this term in the equation, in the revenue equation, as high as possible.

And then as John mentioned earlier, some of the partners themselves don't query and pay when they use your data to provide CNAM to their own customers. And that drives down this term in the equation. And our partners typically query and pay. And that maximizes this term and maximizes the revenue that you see from your subscriber database.

And then finally, after the revenue-- after the average rate gets multiplied by that number of queries-- there's an agreed to revenue share percentage that gets applied to the result. Now, as I mentioned before, there are a lot of legacy deals out there that kept this rate way too low for way too long. And you may well be sitting on one of those deals in your company right now.

But our storage partners are really paying some of the highest rates in the industry. But you'll need to bring Neustar into the equation. Let us help you work with those storage partners to take advantage of the relationships that we have with those storage partners.

Neustar's very proud. We've been an agent of change, if you will, in the industry for some time. We've shaken up the CNAM, the inbound CNAM market by offering a superior product at a lower price. And this is another way that we're helping our customers maximize their revenue and their profits to get a better deal for themselves through what they see through the storage partners on the outbound calls.

So now, as I promised, let's take a quick look at a numerical example just to bring the equation on the last slide to life. So here on this slide, you see sort of a hypothetical phone company that I've come up with, a fairly large phone company, looks to be pretty successful, $5 million listings, 5 million subscribers out there.

And in this case study, under their current storage partner contract, they are seeing about 15 dips per month for their subscriber's outbound calls that they're getting paid on. We'll talk about that in a moment. And it also in this example, there's an average revenue per dip or an average cost to the user of the information of 0.0025 dollars that you see there on the slide.

So if you take the 5 million listings times 15 dips a month, times 0.0025, and then times 12 to get annual number, you see here that the estimated revenue in this situation is $2.25 million. That's the starting point for this numerical example. That's what this customer is doing today.

Now, the last step, if you will, of the equation is this $2.25 million of revenue generated, but when the revenue share happens between the storage provider and the telephone company, perhaps in this example, that's just a 30% deal. So if I take 2.25 million and multiply by 30%, you see that this telephone company is earning about $675,000 a year in revenue off those names.

So this is the starting point. This is where Neustar can enter the equation and maybe improve things. So now let's look at what might happen sort of after. We've shown you the before. Now, let's show you the after, after you've made the switch to one of the storage partners that Neustar is closely aligned with. Of course, we still have 5 million listings. That number hasn't changed. But notice that the other terms in the equation have changed here.

The average number of months monthly dips that I showed 15 on the last slide, is now up to 20. Because of those relationships that we talked about. The partners that we have make sure, through their network, that you get paid for more queries each month based on the calls that your subscribers are making.

The average per dip cost that you see out there on the network that you would receive is likely to increase as well. Our storage partners have a number of great deals in place and offer, quite frankly, higher prices for the queries made to our subscriber databases for the companies we work with.

So in this numerical example, that 0.0025 that we saw in the last slide actually may look more like 0.003 or something like that once the switch is made to Neustar and its preferred providers.

So let's do the math again. 5 million listings, times 20 dips or 20 queries per month, times 0.003, times 12, get us to $3.6 million in revenue that's generated for off of your names. And then if we add on top of that the actual revenue share, I've chosen a higher number here. Because what we've seen is when we align with our storage partners for our customers, that revenue share often goes much, much higher.

So recall that in this example, the existing situation was a 30% revenue share. Now, while working with our storage partner, you may see that revenue share go as high as 70%. Now, your mileage may vary. Every deal is a little bit different. But we've been able to generate lots and lots of higher revenue shares and lots and lots of savings for our customers as a result of this.

So when you take that 3.6 million and multiply not by 0.3 but by 0.7, then you see that we're actually looking at a much, much larger amount of revenue that is generated for the owner of these names, you, the telephone company provider.

In this numerical example, that's about 2.5 million. So working with Neustar has given you improvement on all of the x times y times z on that equation. You're going to get more dips per month. You're going to get a higher per dip revenue. And you're also going to get a higher revenue share. So that's a multiplicative effort, a multiplicative effect, if you will, that comes through so that the increase in the amount of revenue you receive is that much higher.

So to summarize, wanted to talk a little bit about some of the questions you should keep in mind and you should be asking your current storage provider and asking Neustar as we work with our storage providers to get you a better deal. You need to ask yourself does your storage provider charge the highest rates out on the network for querying the data.

In other words, are they charging something more like the 0.003 in my numerical example, or is it something more like the 0.0025 that we looked at. That's an important question. That's the first one.

Secondly, are all the major telcos out there querying your storage provider? Are they working with the end users of this data who are going to query and are going to pay for that information? Not everybody does, believe me. Check out the industry. Do your due diligence. I think you'll find that the companies Neustar works do query and pay much more often.

Does the storage provider pay you if it queries your database to provide caller ID for its own subscribers? Doesn't always happen. There are a lot of customers, a lot of storage providers out there who take your data and say they're going to generate revenue for you. But then they don't pay you for their own use of your data. That's not a fair deal. You need to make sure you insist on that in your storage provider relationship.

And then lastly, as we talked about, whether it's 30% or 70%, or 60, or whatever the number turns out to be, does your provider really offer that high percentage revenue share? You really need to drive that number to as high as possible. Because it's really a key, key part of maximizing and optimizing that revenue number.

Now, we've been talking in the last couple of minutes about storage revenue. But there's really an entire ecosystem here, is the way we like to think of it. That's the term we use. And John talked about this earlier in the presentation.

When we talk about an ecosystem, we're really referring to sort of both sides of the equation. There's a revenue side, which is how much your own names generate for you through your storage partner. And then there's also an expense side. And the expense side is what you pay to get access to caller name information for the calls that are inbound to your own users.

So we really think that this, working with us on the revenue side, is part of an overall optimization, if you will, of your ecosystem. So the revenue side is increasing the incremental storage revenue, what we've just covered in the last few slides. And then there's an expense side. It's reducing those operational costs for in-bound CNAM.

How do we do that? Well simply. There's an economy of scale that comes naturally from working with one vendor. Let us take care of both your inbound and outbound. You'll only have one feed per month to process. It will be streamlined. We do this with many, many customers now, so we know how to make sure that this goes very smoothly on your end.

And another way of thinking about this-- or many of our customers do-- is that outbound revenue that they get that we've talked about on the previous few slides is really an offset to what you're spending on inbound CNAM. It's all different ways of looking at the same equation here. But we have many customers who look at what they pay for inbound CNAM and view what they get for outbound CNAM as a form of cost relief, if you will, as an offset against that.

Any way you look at it, whether you look at as cost relief or incremental revenue, net net, those terms combine. And they really maximize the overall profit that you see from this ecosystem. So it's really, really an important part of looking at the business holistically. It's not just revenue. It's not just expense. It's looking at both of these, optimizing both of these, and therefore driving incremental profit.

So to close, and then we'll be tossing it back for the Q&A section-- we want to make an offer to everybody on the call today, and of course anybody who isn't on the call today, we'll make this offer to. And that is we'd really like to work with you to help you figure this problem out.

As I said earlier in the presentation, this is something we do all day long, not our first rodeo, as we like to say. And we could really help you. We can take the burden off you. Let us do the heavy lifting.

We really just need to have a look at some information from you, information that's readily available, perhaps say the last couple of months worth of invoices or revenue reports that you get from the names that you have out on the network with your existing storage provider. And we really can help you drive those numbers in that equation up by working with a different storage provider potentially.

If we can't, we'll tell you so. If you're already maximizing the numbers, good for you. But it's our experience that there's a lot of found money out there. And we can help you find that money if you'll give us the chance. So put us to work, please. We look forward to the opportunity.

So with that, I think I'm supposed to toss back to Rich, is that right, John? And we'll see about any Q & A.

Very good. Thanks very much, Mike. Yeah, and we do have some questions queued up, already in queue. So we're going to jump in here in a second. I wanted to let the audience know while our presenters are answering the questions, please take a moment to answer the feedback form that will appear on your screen. If you have a pop-up blocker technology in place, we ask that you disable it so that you can receive the form.

So guys, let's more on to question number one. The question is, can I have more than one storage partner? John, you want to grab that one, maybe?

Sure. No, just because of the way the process works. In order for calls to be routed to your data, you have to have one storage partner that is listed in an industry database known as the CNARG. So to have more than one would create issues with routing the calls or the queries to the appropriate database and then back to the caller ID subscriber. So while you can have an inbound CNAM provider different from your storage provider, you can really only have one storage provider.

OK. Another question here. Can Neustar provide me savings on just inbound calling name service without me changing storage providers? Mike, you want to tackle that one?

Yeah. Actually, John and I, I think, are going to tag team the questions here today Rich. But that's fine. And the short answer is we absolutely can work with you just on the inbound side. That's where our business in caller name really got started. It's only been in recent years that we've gotten involved on the outbound storage provider side of things.

So we're happy to work with you any way you want to. Obviously, we'd love to have you work with us on everything, but if it's just inbound, hey, we'll work with you that way.

Right. So here's a related question. Does Neustar have to be my inbound calling name provider before it can be my storage provider?

No. Not at all. While Mike did mention the operational benefits of us for both services, certainly many of our customers use us just for inbound. Some use us just for storage. And some use us for both.

OK. Here's another question from the audience. What are some of the challenges involved in moving to this new CNAM model?

Challenges really relate to the existing terms of your agreement. So if a decision is made that it's economically beneficial to make a change in your storage partner, then obviously you have to review whatever restrictions might be in your agreement. Beyond that, we sort of joke around here that in a way, this is analogous to a consignment business.

You have an asset that you are using a third party to monetize for you on particular economic terms. And if it's decided that the consignment shop across the street is going to generate more money for those assets and share more money with you, then aren't any legal restrictions or prohibitions to that. It's literally a matter of getting your assets across the street to the consignment shop.

We work with all the standard formats that are necessary to transfer data. So we would probably simply be able to change the FTP site or other transfer methodology you use to deliver those subscribers today and work with that without any heavy lifting on your part.

Yeah, I'll jump in here, John, as well. And John covered it already. But we're very proud of the engineering team that we have as well. It's a very seamless process when we switch, when someone switches from one storage provider to the Neustar storage provider. We've really gotten that down.

We're very good at that. And we'd encourage customers and prospective customers to do their due diligence and check around, and find out what a good job we do with that. Because we think that's a real value add and a real competitive advantage we have vis a vis the other people in the industry.

Here's another question. What types of investments do we need to consider to move to this approach?

It's sort of related to the question I answered a minute ago, I think, in that there really aren't any investments necessary. There's no hardware, software, anything like that. Again, you're already-- again, assuming this is a telco that's already storing its listings with that storage platform, it's literally redirecting the data to Neustar rather than to your current provider.

OK.

So there are no investments, really.

Gotcha, gotcha. One more question. Is there a minimum quantity of subscribers that is required to justify this investment?

We really don't think so. Obviously, the kind of savings I showed on the numerical example earlier, obviously, if the numbers are bigger, if you have more subscribers, you potentially can save more money.

But on a percentage basis and as an incremental amount of revenue and profit to your business, no. No real minimum quantity required. We think we can help everybody find a few more of those pennies or nickels or dollars. And we're eager for the opportunity to do that.

OK. Let's see, we had one more question before we wrap up. Please name or identify any large service providers or current partners that do not query TARGUS or may intend not to query and pay. Isn't this an area of concern to any prospective TARGUS storage partner. And if not, why not?

Well it's definitely a matter of concern in that as Mike pointed out, to use his direct example, you want to have the 20 queries data rather than the 15. Hopefully even more, because that's one of the key variables in that equation.

So we have demonstrated and can demonstrate with case studies and historical data from customers that we're comfortable that all major telcos and service providers are querying the data that we're storing. And as a result, that's why we're confident that-- we have seen that customers who have worked with us and our chosen storage partners actually see an increase-- this increase we've been talking about-- in the revenue, not only because of the higher percentage revenue share, but also because all major telcos and service providers are querying that data.

OK. All right guys. So thanks very much for taking on all those questions. Before I sign off, I'd ask you, John or Mike, do you have any closing, maybe a comment or statement before we let you go?

Well this is Mike. Just add one more time, thank all of you who have joined us today. And again, we're eager to tackle this problem. Help us help you find more money. That's good for you. That's good for Neustar. That's good for the industry.

And as I said earlier, we're proud of the role we've played in helping our customers save money and increase their revenue. We want to keep shaking up the industry to do that, and we promise you we will do that.

I'll just echo Mike's appreciation for everyone joining us, and Rich, to your point earlier, it looks like we've actually given everybody three minutes back, not as much as we'd expected, but we did come in at 45 minutes.

Well there you go. Thanks very much, guys. And thanks to our audience. With that, we'll let you go, and have a productive remainder of the day. Thanks.

Great, thank you.

*TARGUSinfo was acquired by Neustar in November 2011.