Verizon looks past Treasury deal

Verizon Communications expects that a $45 million contract it won to manage the Treasury Department's voice networks will create opportunities for the company to provide data network management and other services.

Treasury awarded Verizon the Digital Telecommunications Switching System 2 contract on March 9 to maintain and support its voice communications network in the Washington, D.C., area, the company announced Thursday.

The DTS2 network connects Treasury's headquarters with its bureaus and offices in Washington and the Maryland and Virginia suburbs, serving about 35,000 employees. The contract has a one-year base with four one-year options. It also includes special projects relevant to DTS2 requirements.

"This is really one of the most satisfying contracts we've ever won," said Randy Lucas, vice president and general manager for federal markets in Verizon's Enterprise Solutions Group.

Lucas sees DTS2 as an opportunity to offer data network solutions as part of the special projects portion of the contract. Verizon plans to introduce two new managed network solutions nationwide in the next few weeks. The company also plans to pursue other Treasury contracts to manage communications in other regions as the existing contracts expire, Lucas said.

Under DTS2, Verizon will manage voice telecom systems at Treasury under a seat management model, in which they will move, change or upgrade phones for the customer and manage the overall voice network.

"We are prepared to introduce voice over IP when they are ready to go there, too," Lucas said.