Verizon wins contract worth nearly $1 Billion from U.S. Department of Defense

Verizon wins contract worth nearly $1 Billion from U.S. Department of Defense
Published - Mar 16, 2022 @ 3:34 PM (EET)

On Wednesday, Verizon Communications Inc. (NYSE:VZ)said it had secured three task-order contracts for services worth $966.5 million for its public-sector unit from the U.S. Department of Defense


The company will be responsible for providing network modernization and technical support services for the Pentagon, the Department of Defense's National Capital Region, and Fort Belvoir.


To transition the entire Pentagon military and civilian population from copper-based telephony to advanced internet protocol (IP)-based services, Verizon will partner with the DOD under the Pentagon task order valued at $515.3 million.  The services will provide a converged-enterprise environment for the Pentagon's voice and data points.


Secondly, with the DOD-NCR task order of $432.9 million, Verizon will deliver core voice, transport, internet, and professional services to over 370 locations within the DOD-NCR.


Respectively, Verizon has been awarded an $18.3 million task order to provide communications technology infrastructure at Fort Belvoir.


Commenting on the dealings, Verizon Senior Vice President of the Public Sector, Maggie Hallback said "The U.S. Dept. of Defense is at the forefront of technology modernization, and we are proud that Verizon has been selected to grow our existing partnership and continue to serve as its digital transformation partner."

MARKET SENTIMENT


Verizon remains the U.S.' largest wireless provider, ending 2021 with 142.8 million retail wireless connections.  Since the company hasn't pursued massive debt-fuel acquisitions to expand its media portfolio and streaming services, Verizon remains a more stable investment than its rival AT&T.


After a rough end to 2021, shares of the telecom giant are in the process of climbing back, with analysts expecting its operating revenue and adjusted earnings to grow 2%, respectively, in 2022.


Though Verizon's 5G buildout still has a long way to go, the wireless leader should be a significant beneficiary and stay steadily on track as the adoption of such technologies continues over the coming years.


"Building on 5G and other professional services awards Verizon secured in 2021, our team of professional and managed services experts are in lockstep with DOD's strategic priorities, and we stand ready to help their leadership adapt to the increasingly sophisticated requirements and growing network infrastructure demands." - Halbach

                                             


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