$100M NYC telecom deal goes to AT&T

AT&T Inc. has won a multiyear contract to deliver telecommunications services that address New York City's data applications needs.

While the initial value of the telecom deal is $25 million, AT&T said in a statement that the award positions it to win upward of $100 million in business from the city's various agencies as well as publicly funded cultural institutions and public authorities.

AT&T said that it was one of two carriers that had negotiated a master services contract with the city. New York's contract with the other carrier, Verizon Communications Inc., is still pending final approval, said Matt Kelly, a city spokesman.

Under the contract, the city's municipal government will have the option to use AT&T local and long-distance voice services as well as the company's data services.

The master services contract offers those entities that purchase services increased redundancy, reliability and security of critical data, the company said.

The contract is potentially one of the company's largest since its merger with SBC last year, AT&T said.

AT&T of San Antonio, Texas, ranks No. 31 on Washington Technology's 2006 Top 100 list of the largest federal IT contractors.