Verizon Wins $16.4 Million Services Contract From Postal Service

Washington, DC (AHN) - Verizon Business, a division of Verizon Communications (VZ), has been selected by the U.S. Postal Service to provide network services for the next 10 years.

The contract, valued at $16.4 million, is just a piece of the government's $48 billion Networx Universal program, an effort to upgrade communication systems of government entities.

The deal calls for Verizon Business to provide long distance and calling card services for about 166,000 telephone lines at 34,000 locations.

The Postal Service contract is the second win for Verizon in the Networx Universal program. The company previously landed a $678.5 million contract to supply network equipment for the U.S. Department of Homeland Security. That contract is also spread over 10 years.

The Networx program is the largest ever government program for telecom services.

Shares of Verizon traded higher Monday, up 1.5 percent, settling at $35.91.