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6 Companies Get US Telecom Contracts

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CHICAGO, Jan. 1 -- Six companies were awarded four contracts worth at least $400 million by the US government to build a global network with optical and data networking gear, according to a statement distributed by the Defense Information Systems Agency, an arm of the military.

Contracts were awarded to Ciena Corp., Sprint, Sycamore Networks, Juniper Networks, Qwest Communications International and Cisco Systems. Sprint and Qwest are the prime suppliers in their contracts, but have subcontracted work to Sycamore and Cisco, respectively.

According to an article in Reuters this week, analysts have valued the contracts, described as "multiyear," at about $100 million each, and possibly more. Qwest told Reuters that its contract, including options, could stretch to 10 years. Other analysts have said that the four contracts combined could generate almost $1 billion in the initial two years, Reuters said.

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Jan 2004
CommunicationsdefenseNews & Features

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