DHS Networx deal to Verizon; AT&T in back-up role

The federal government's Networx Universal project is finally yielding some revenue for telcos. The Department of Homeland Security awarded about $679 million worth of work from a $1 billion, 10-year contract to Verizon Communications, with potentially another $292 million from the contract going to AT&T as a back-up service provider. The DHS deal involves more than 5,000 employees and 22 different agencies. Verizon will consolidate multiple wide area network architectures on a secure IP infrastructure.

Perhaps the contract will be an ice-breaker between government agencies and the carriers authorized to bid on Networx Universal deals. Since carriers received authorization more than a year ago, very few Networx contracts have been drawn up. The telecom industry has been expecting that would change as this year plays out. The DHS deal is the largest Networx contract awarded thus far.

For more:
- read this Associated Press story
- check out this coverage at Network World

Related articles:
- Networx contracts seemed to stuck in the slow lane until recently. Networx report 
- As 2008 opened, the Networx program wasn't providing any windfall Networx article