» U.S. Government Gives Cold Shoulder to Sprint NextelTelecommunications Industry News

Telecom News Editorials Reports Glossary

U.S. Government Gives Cold Shoulder to Sprint Nextel

6:30 am on March 30, 2007 | Category: Business, Corporate, Telecom Services

The U.S. federal government has selected AT&T, Verizon, and Qwest as the only three telecommunications providers qualified to handle a massive public contract worth at least $20 billion over the next 10 years.

The three telecom incumbents will now be able compete for the business of up to 135 federal agencies in thousands of locations throughout America and around the world. Services offered will include everything from Voice over IP to internet video to network security upgrades.

A major surprise to the industry, however, is the omission of Sprint Nextel Corp. from the government’s shortlist. Sprint, along with Verizon, has held a nationwide contract with federal authorities for the past several years, and was not expected to get the cold shoulder in this crucial decision.

â€œA lot of us are scratching our heads, saying, ‘Exactly why didn’t Sprint get the award?”’ said analyst Ray Bjorklund of FedSources, a research group that tracks government contracts. â€œSprint’s government business is important, no question about it.â€

When asked about the decision, General Services Administration official, John Johnson would only comment that â€œthe three awardees best meet our needs.â€

Telecommunications Industry News