Verizon enhances public sector reach with new MiCTA agreement

Verizon Enterprise Solutions (NYSE: VZ) has expanded its agreement with group-purchasing organization MiCTA, enhancing the reach of its service portfolio to state and local government agencies, K-12 schools, colleges and universities, libraries and nonprofits.

Through this new agreement, Verizon is expanding the suite of solutions it will offer MiCTA to include cloud computing, managed hosting, mobile device management and content delivery capabilities through Verizon Digital Media Services, as well as expanded network and desktop security and professional consulting services.

What's more, schools and libraries that work with MiCTA could qualify for the FCC's e-rate funding program, which helps schools and libraries obtain affordable broadband. Schools and libraries have until March 26 to apply.

Running through 2016, the new agreement between MiCTA and Verizon replaces an existing one that was set to expire in August 2015. The original MiCTA-Verizon agreement was signed in October 2010. 

"In addition to Verizon's traditional services, our members can access a broad spectrum of the company's advanced data networking, VoIP, collaboration, security, cloud computing and mobility solutions through this expanded master services agreement," said Tim von Hoff, chief operating officer of MiCTA, in a release.

Being able to garner new agreements with organizations like MiCTA is important for Verizon as it looks to shore up its revenue mix in the enterprise services unit, one where revenues have lagged as public sector organizations have cut back or delayed service rollouts.

In the fourth quarter of 2014, the service provider reported that strategic services such as cloud and Ethernet rose 1.5 percent year-over-year to $2.1 billion over the fourth quarter of 2013. However, legacy declines drove down overall business services revenues to $3.4 billion year-over-year from $3.5 billion in the same period a year ago.

For more:
- see the release

Related articles:
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Verizon's McAdam: Some wireline assets would be better off in someone else's hands
Verizon's enterprise weakness is offset by FiOS revenue strength in Q3
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