Verizon Sees Growth in Government Contracts
Verizon will be busy in the second half of 2008 bidding for projects under the federal Networx Universal communications program, as the carrier seeks continued growth in its federal business. Speaking at a media event Monday, the company announced plans to bid for the U.S. General Services Administration projects, saying it already has won a $16.4 million Networx contract with U.S. Postal Service. Company executives also addressed uncertainties surrounding the D-block reauction.
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GSA is expected to issue more than 40 requests for network and wireless services this year under the Networx Universal program and Verizon Business will likely bid on most of them, said Susan Zeleniak, group president of Verizon Federal. Also under the Networx program, Verizon will start network implementation soon under the contract with the Department of Homeland Security (DHS). DHS awarded Verizon a contract earlier to consolidate multiple legacy networks into a single IP network. The company will provide emergency communications and security operations, connecting 4,000 DHS sites, said Zeleniak. The Networx Universal program is the largest federal communications program established by GSA, providing federal agencies with a common vehicle for purchasing networking and technical services.
The $16.4 million agreement with the U.S. Postal Service involves a 10-year, $10 million agreement to provide long- distance and calling-card services for the agency’s 166,000 lines, covering 34,000 locations nationwide, and a $6.4 million contract to upgrade the agency’s 100 data circuits to an IP network based on multi-protocol label switching, Verizon Business said.
Verizon sees a lot of opportunities, particularly in the area of mobility, as government agencies move toward enhanced professional services, said Zeleniak. Within the mobility area, the company has seen “tremendous growth” in the wireless data business, said Mike Maiorana, vice president for government sales operations for Verizon Wireless. “This is a really busy time for Verizon as more customers are expressing interest in Verizon’s government services than it has ever had before,” Zeleniak said.
Verizon Wireless sees some “unanswered questions around the D-block,” Maiorana said when asked about Verizon’s interest in the FCC’s D-block reauction. The carrier filed comments with FCC regarding the D-block last Friday in which it said a public/private partnership must serve public safety’s communications needs and be “commercially viable.” It also said the Commission should reject eligibility limits for participation by carriers that would subordinate public safety to unrelated policy objectives. It said it’s an open question whether the centralized approach of building one national network by a national licensee remains the best means of achieving the commission’s goals. The commission should instead consider whether to adopt a federal framework using a “network of networks” design for the nationally integrated network and access whether licensing the D-block, perhaps with public safety broadband spectrum, on a regional basis would be more likely to succeed. Finally, it said private entities should not be permitted to profit from the management role of the public safety spectrum trust, referring to the Cyren Call case (CD May 16 p2). Sources at the FCC and in industry have said they don’t expect AT&T and Verizon Wireless to take part in the D-block reauction (CD April 23 P4).