Level 3, Sprint suffer from feds slow transition to Networx

AT&T, Verizon winning most of the contracts in delayed telecom overhaul

Larger rivals are beating out Sprint Nextel and Level 3 Communications in securing contracts with federal agencies under the huge Networx telecommunications contract, reports The Washington Post.

About $1.2 billion in annual communications spending was supposed to be transferred to the Networx program from the FTS2001 system by last summer, but agencies still haven't transitioned $684 million, more than half, in work to the new system.

Records show Verizon Communications and AT&T have won most of the stopgap work, and delays in the transition have meant fewer opportunities for contracts for Level 3, which is only on the Networx contract, the article said.

Reader Comments

Mon, Jul 11, 2011

This is partly true. Prior to Networx Universal Sprint was one of the largest providers to the government under FTS 2001. Sprint failed to be named under the Networx Universal vehicle and was instead named under Networx Enterprise. Most large agencies have used the Universal contract vehicle as it includes more choices for services. The failure of Sprint Executives to bid successfully for the Universal contract is the reason Sprint is now lagging in this area. Level 3 is hurt as it was not a provider under FTS 2001. It could be inversely argued that to date Sprint has benefited from the slow transition from FTS 2001.

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