Key points:
- Verizon awared nearly $1B in prestigious DoD contracts
- The deal had little effect on VZ stock this morning, dipping 1.4%
- Verizon will uphold the partnership moving forward to promote a long-term innovative IT vision
Verizon, the US specialist in wireless networks, today announced it has been awarded nearly $1B in government contracts by the Department of Defense (DOD). The company will provide network modernization services and further technical support to the Pentagon when needed.
The deal had little effect on VZ this morning, with the stock edging down slightly by just over 1%. It is surprising that a deal of such magnitude failed to please bulls this morning, even as tech stocks are seeing some relinquishment from recent heavy selling.
The total $966.5M award has been split into three contracts. The first, valued at $515.3M, will see Verizon partner with the DOD to transition the entire Pentagon military and civilian population from older technology to advanced internet protocol-based services. In more detail, the contract involves the conversion of more than 50,000 voice lines to an integrated IP environment including optimized voice and video services.Â
Read Also: Best Tech Stocks To Buy Right Now
The second award of $432.9M will the DOD-NCR involves the delivery of core voice, transport, and internet services to over 370 locations within the DOD-NCR. Finally, Verizon has been awarded an $18.3M task order to provide communications technology infrastructure services at Fort Belvoir – an army garrison that provides logistical, intelligence, and administrative support to a variety of commands.
The company will also remain active in working with DOD in the future to ensure the development of a long-term IT vision that continues to promote innovation. VZ stock currently trades at a daily loss of 1.16%, down 6% year-on-year.Â