AT&T wins $250M Hawaii network contract

The Defense Information Systems Agency has awarded a 10-year contract worth up to $250 million to AT&T Government Solutions for the Joint Hawaii Information Transfer Service (JHITS), which will serve Defense Department users in Hawaii.

This is the second time AT&T has won DOD's key Hawaii network contract. In 1997, DOD awarded the company a $291 million contract for the original HITS system. AT&T beat out the local telephone company at the time, which was GTE Hawaiian Telephone Co., later acquired by Verizon with its purchase of GTE.

The Carlyle Group bought Hawaiian Telcom from Verizon for $1.65 billion in May 2005. A Hawaiian Telcom spokesman said the company believes it will have the opportunity to work as a subcontractor to AT&T on the JHITS contract.

The spokesman added that WareOnEarth Communications was the only other JHITS bidder. Officials from that company did not respond to a request for comments.