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AT&T, Qwest, Verizon Win 10-Year Government Contract

Qwest CommunicationsInternational, AT&T and Verizon on Thursday were awarded the government's largest telecommunications contract ever, a 10-year deal worth up to $48 billion.

The contract winners, who beat out Sprint Nextel, now have to compete with each other for the telecom needs of various federal agencies.

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The contract covers voice, video and data services and technologies domestically and internationally for at least six federal agencies.

Industry analysts said they expect the federal government to spend at least $20 billion over the life of the so-called Networx contract, which is capped at $48 billion.

"The advanced technologies and services defined in the Networx program will serve as a platform to transform the government's telecommunications infrastructure to a more seamless and secure environment," GSA's acquisitions commissioner Jim Williams said in a prepared statement.

The two previous 10-year government-wide telecom contracts had two main providers. The first went to Sprint and AT&T. The second to Sprint and MCI Worldcom, since acquired by Verizon.

For the losers of the initial Networx Universal contract, there is a consolation prize on the table. GSA is planning in May to award a second telecommunications contract called Networx Enterprise, which contains fewer mandatory requirements and services in select areas across the nation.

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