- The U.S. Federal Aviation Administration awarded Verizon Communications Inc's VZ Verizon Business Network Services LLC a contract worth up to $2.4 billion.
- The length of the contract is 15 years, if all options are exercised, as the agency looks to modernize its systems.
- Verizon will provide the FAA with telecommunications, information management services, and other capabilities to support it in continuing to provide the world's safest and most efficient aircraft system. In addition, the VZ will provide network connectivity to administrative information systems and functions, including e-mail, payroll, and on-line training.
- Also Read: Insiders Selling Five Below, Verizon Communications And This Consumer Defensive Stock
- Verizon stated that it would "build the FAA a dynamic, highly available and secure enterprise network to support all of the agency's mission critical applications across the National Airspace System," according to Reuters.
- According to the report, Verizon Business CEO Kyle Malady stated that the project would assist the FAA in undergoing "a telecommunications infrastructure transformation that utilizes the latest advances in technology and networking solutions."
- Price Action: VZ shares are trading higher by 0.23% at $38.75 premarket on Friday.
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