At first there were only two (NeuStar and VeriSign). We talked to one to find out about the original TTP service.

by Alex Goldman ISP-Planet Managing Editor [May 11, 2007]

Before Mike Warren joined Sterling, Va.-based NeuStar as its vice president for fiduciary services, he worked at the FBI. Warren says that he was with the FBI for thirty years, spending the last four on CALEA. "Under our innovative Flexible Deployment program, companies were allowed to deploy CALEA solutions within their normal business cycle over two years, according to the statute."

They could also apply for an extension of time with the FBI and the FCC.

The large carriers were allowed to deploy "in the normal business cycle as long as they deployed in high intercept areas first."

The FBI had a $500 million budget to spend on software modules that would make switches CALEA compliant. "We worked with equipment providers and bought the solution on behalf of carriers," says Warren. "That was our RTU program."

After working with the FBI, he joined the D.C. law firm Steptoe & Johnson (starting associate salary: $145,000) where he worked in its TeLEA practice. "Our goal was to help carriers understand their obligations, but we soon realized that they didn't just want someone to tell them how to do it—they wanted someone to do it for them," says Warren.

So he and others founded a company called Fiducianet. The company was acquired by NeuStar and became NeuStar's Fiduciary Services division.

Experience
Warren is quick to tout the company's experience as proof of its value to service providers. "Verizon Wireless was one of our first and largest clients and we still work for them today," he says. "We handle all civil and a percentage of their criminal subpoenas. We have over 150 carriers currently under contract, and that number is growing daily as we approach the May 14th CALEA deadline."

Some companies have in house counsel, Warren admits, but notes that the company receives subpoenas for 90 percent of its clients.

Most want the TTP to handle as much of the work as possible. That means NeuStar needs to connect to the ISP's billing, customer care, and network.

Pricing and availability
We've heard concerns on the ISP-Lists about the pricing of the largest TTPs, NeuStar and VeriSign.

Warren is quick to explain that NeuStar's services are affordable. He says the company recently disclosed pricing to NECA. "We said that the assessment and filing fee would be about $5,000. The equipment plus testing and integration would be an additional $5,000. The software license would cost about $5,000 and a year's maintenance of that license would cost $1,000. Our fee would be about $500 per month. The whole package would cost $22,000 in the first year and $7,000 in each subsequent year. "

He says that the company is working with resellers such as the National Rural Telephone Cooperative (NRTC) who can provide services at a lower price. "These resellers can provide services for as low as $10,000 in the first year and about $4,000 in year two ($250 to $300 per month)."

When the ISP receives a subpoena, that costs extra (starting at $100 for the simplest record request). If a wiretap order is received, a processing fee is billed and then collected from the law enforcement agency and reimbursed to the service provider.

NeuStar can test a TDM or VoIP network for CALEA compliance at $1,250 per day (the number of days required depends on the complexity of the network).

We were here first
In conclusion, Warren re-emphasizes the experience of his company (and that of VeriSign). He says that smaller TTPs will outsource their legal expertise instead of employing legal teams in house. NeuStar has attorneys and paralegals on staff and works with people from Steptoe & Johnson; VeriSign works with people from Perkins Coie.

—End