Level 3 Communications has been awarded an extension on the General Services Administration (GSA) Networx Enterprise contract, enabling the service provider to continue to bid on new task orders for telecom services.
Initially set to expire in May 2017, the GSA extended the Networx Enterprise contract in order to give federal government agencies time to transition to Enterprise Infrastructure Solutions (EIS), the follow-on contract vehicle to Networx.
Over 300 U.S. government departments and agencies currently use Level 3's services and consultative capabilities to help meet their network requirements.
Today, Level 3 provides networking support to a mix of civilian agencies, the Department of Defense, systems integrators, state/local government agencies and educational/research institutions.
Among the many services that Level 3 provides as a prime Networx Enterprise contractor are Ethernet services, Virtual Private Network (VPN) services, internet services and collaboration services.
Being able to get an extension on the Networx Enterprise contract is also key for Level 3 in that it helps further strengthen their relationships with large federal agencies and potentially bolster its core network service (CNS) revenue base further.
Besides Networx, Level 3 along with AT&T (NYSE: T), CenturyLink (NYSE: CTL), Verizon Business (NYSE: VZ) and a host of other service providers got their tickets to participate in the U.S. Defense Department's Defense Information Systems Agency (DISA) services contract to compete for contracts worth up to $4.3 billion.
During the first quarter, Level 3 reported that CNS revenue grew 3.6 percent year-over-year to $1.95 billion. Within the CNS segment, enterprise service revenues were once again a key contributor, growing 5.7 percent year-over-year, or 6.2 percent year-over-year.
- see the release
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