Verizon Communications Inc. VZ and CenturyLink Inc. CTL have clinched orders worth $150 million to provide network services and infrastructure support to state and local government agencies in Virginia. The contract, dubbed as 'VITAnet', will enable the said companies to provide services relating to the replacement of obsolete network and communications infrastructure in the Commonwealth. VITAnet intends to replace the Commonwealth of Virginia Network (COVANET) contract, which traditionally handled similar services.
Public entities within Virginia are looking for better ways to engage and interact with its citizens. From filing different online forms to connecting different governmental organizations, colleges and other institutions, an adequate network infrastructure is needed. Verizon and CenturyLink will fill in the gap by providing consultancy services to transform the archaic infrastructure to more modern standards.
Services to be Provided
Both Verizon and CenturyLink will deliver a wide range of network-centric solutions under the VITAnet contract, including a comprehensive networking portfolio, as well as managed services, unified communications and collaboration solutions, Internet protocol-based voice services and customer-premises equipment. The contract also allows flexibility to add new services as and when they become available, enabling the Commonwealth to leverage the benefits offered by networking and communications advancements.
Other News
Verizon subsidiary AOL's IP transport division - Verizon Digital Media Services - recently signed an agreement to acquire Volicon, a leading provider of video capture, monitoring and archiving solutions to over 1,200 TV broadcasters and video operators worldwide. The deal adds more ammunition to the company to compete in online video services space, challenging the likes of Netflix.com NFLX and telecom rival AT&T Inc. T .
CenturyLink, too, revealed its plan to trial over the top (OTT) video services. CenturyLink has been increasing its Prism TV footprint recently and the strategy to explore in the OTT segment bodes well with the growth objectives of the company.
CenturyLink currently sports a Zacks Rank #1 (Strong Buy) while Verizon carries a Zacks Rank #3 (Hold).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
