Level 3, Sprint suffer from feds slow transition to Networx

Level 3 Communications and Sprint Nextel are losing opportunities for federal agency telecommucations overhaul, report states.

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.