Verizon Enterprise (NYSE: VZ) has bolstered its business unit by expanding its relationship for five years with existing customer JetBlue Airways, giving the unit a much needed boost at a time when businesses are being conservative about spending money on communications infrastructure.
The two companies are hardly strangers to one another.
This new agreement expands its existing agreement with JetBlue that began in 2009 in terms of the services Verizon offers to the low-cost airline carrier. By using Verizon's suite of cloud, managed security and mobility services along with professional services, JetBlue said it will be able to move forward with its own "ongoing expansion and evolution."
"Our strategic collaboration with Verizon continues to be a major driver in supporting our targets for growth, innovation and leading the industry in delivering a customer experience that is specifically designed for today's 21st century customer," said Eash Sundaram, executive vice president and chief information officer at JetBlue, in a release.
Financial details of the new contract were not revealed.
Regardless of the size of the agreement with JetBlue, Verizon continues to see challenges in the enterprise segment. During the third quarter, Verizon reported that overall enterprise sales were $3.38 billion, down 4.4 percent from $3.5 billion in the third quarter of 2013 due to ongoing declines in legacy services and CPE.
Fran Shammo, CFO of Verizon, said during the third-quarter earnings call that the company continues to face various headwinds in the enterprise segment, something he does not think will be "changing for at least the next couple of quarters."
- see the release
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