Remember when government services were starting to look like a healthy market opportunity for telecoms service providers. Between the federal government's Networx Universal project and the potential for increasing spending on broadband and security by all levels of government, the sector looked like a sure thing.
However, Networx project spending so far has run at a trickle instead of the major windfall that it was supposed to be for the carriers that won a piece of it. Most of the $48 billion in Networx contracts remains unspent. The tender condition of the U.S. economy can't be helping matters, and can't be an encouraging sign for the rest of the government market. Still, Networx suppliers continue to meet with potential government clients, and are hopeful for a breakthrough.
- read this report from the Associated Press
- The federal government authorized Networx purchases to begin last September