Qwest, AT&T, Verizon Win Bid Rights on $48B Fed Telco Contract
TMCnet Web Editor
Qwest Communications International Inc., AT&T (News
) Inc. and Verizon Inc. won the right to bid on a 10-year government telecommunications contract worth at least $20 billion and as much as $48 billion, according to several online reports Thursday.
The three companies beat out Sprint (News
) Nextel Corp. for the right to participate in the Networx acquisition program, which is intended to upgrade the government’s telecommunications infrastructure. The three telco giants now must compete with each other for the telecom needs of at least six various federal agencies, reports said.
The contract covers voice, video, and data services and technologies, both domestic and international.
According to a BusinessWeek.com report, the two previous 10-year government-wide telecom contracts had two main providers: one was awarded to Sprint and AT&T, while the second went to Sprint and MCI Worldcom, which Verizon (News
) later acquired.
The report said that the GSA is planning to award a second communications contract in May called Networx Enterprise, which covers service in select areas. This would provide a second opportunity to companies losing on bids for the main Networx contract.
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Spencer Chin is a contributing editor for TMCnet. To see more of his articles, please visit his columnist page.
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