AT&T wins $31M managed VPN contract with HUD

AT&T's (NYSE: T) Federal Government unit added another customer to its win column as it was awarded a $31 million contract to provide managed VPN services to 93 Dept. of Housing and Urban Development (HUD) sites.

Under the terms of the contract, the telco will provide its Managed Trusted Internet Protocol Service (MTIPS), which will give the agency a secure Internet connection.

The telco was awarded the VPN project via the General Services Administration's Networx contract vehicle. AT&T, along with CenturyLink (NYSE: CTL) and Verizon (NYSE: VZ), was awarded a seat on the Networx contract vehicle in 2007. 

Like other federal agencies, the work HUD is doing with AT&T is part of a broader initiative to update and modernize its network infrastructure from legacy Frame Relay to VPN, which will support employees and operations throughout the United States.

While federal agency's transition to GSA Networx has been slower than initially forecast, it is another key win for AT&T. Besides HUD, it recently won an award to provide its MTIPS service to US Postal Service (USPS) and secured a spot on the GSA Region 4 Integrated Telecommunications Services (GRITS II) contract.

For more:
- see the release

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