Verizon gets USD1.12 billion in defense contracts

Monday, Nov 03, 2008

Verizon Communications Inc. said Thursday it received two contracts worth a combined USD1.12 billion to provide voice and data services to a unit of the U.S. Defense Department.

Under one agreement, worth up to USD752 million, Verizon Business was chosen by the departments Defense Information Technology Contracting Organization to provide Defense Department agencies with data services.

In a second agreement, worth up to USD368 million, Verizon Business will provide voice services, including long-distance calling and video-teleconferencing, for more than 700,000 users at military facilities around the world.

The 10-year agreements could end up being worth more because the organization will have the option of expanding services, the company said.

Verizon, the worlds second largest telecommunications company, has already provided similar services to the Defense Department under a 2001 contract.

The new agreements fall under the federal Networx contracting program, which is a USD68 billion telecommunications upgrade for federal agencies that is slated to be in place by 2010.

Source: BusinessWeek