Comcast Business gets seat on GSA schedule 70, enhances public sector play

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Comcast Business (Nasdaq: CMCSA) has been awarded a Schedule 70 contract with the General Services Administration (GSA), enabling it to sell directly to federal, state and local government customers in its serving regions.

Initially, the contract applies to its Business Ethernet services. Going forward, the service provider said it plans to expand the Schedule to include all of its full voice product suite as well as its Business Internet and Business TV offerings.

Government customers that are looking for an alternative Ethernet provider will be able to get access to the MSO's fiber-based Ethernet offerings that offer speeds ranging from 1 Mbps to 10 Gbps.

Gaining the Schedule 70 contract is a major development for Comcast, particularly as it tries to appeal to larger regional customers. Like its MSO counterparts Time Warner Cable (NYSE: TWC) and Cox, one of the key advantages is that it owns and operates its own fiber network.

This contract will also enable Comcast to build its growing business service revenue base in a segment that's increasingly migrating to the cloud. In its fourth-quarter 2013 earnings, Comcast reported that business revenues rose 25.3 percent for the quarter to $876 million and 26.4 percent for the year at $3.24 billion.

Despite being a late bloomer in the Ethernet services market, Comcast's aggressive network build enabled it to gain a No.  3 spot on Vertical Systems Group's U.S. Carrier Ethernet Services Cable Leaderboard. If it completes its proposed acquisition of Time Warner Cable, the MSO will be an even bigger factor in the competitive Ethernet market with an even greater set of network and service assets.

For more:
- see the release

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