GO
Loading...

Enter multiple symbols separated by commas

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.

Symbol
Price
 
Change
%Change
IBEX DOUBLELEV
---
S
---
T
---
VZ
---

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.

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

U.S. Video

  • Hero miles for military members: Real estate magnate's plea

    Chairman of the Fisher House Foundation, Ken Fisher, discusses the Hero Miles program with CNBC's Dina Gusovsky. During Military Appreciation Month, Fisher is asking every traveler to donate 1,000 of their miles to replenish the Hero Miles programs that is in danger of running out.

  • Cramer shuts down this market's haters

    "Mad Money" host Jim Cramer on why this market can't stop, won't stop.

  • From the battlefield to the boardroom

    Your Grateful Nation is dedicated to helping Special Forces veterans enter the corporate world and Knot Standard provides complimentary suits to vets. Mad Money's Jim Cramer spoke with Rob Clapper, Your Grateful executive director; John Ballay, Knot Standard co-founder and president; Tej Gill, retired U.S. Navy Seal; and Darren McB, active duty U.S. Navy Seal.