UPDATE 2-Verizon, AT&T win Homeland Security contracts

Wed May 14, 2008 10:24pm EDT

(Adds AT&T contract)

NEW YORK May 14 (Reuters) - Verizon Business, a unit of No. 2 U.S. telephone service provider Verizon Communications Inc (VZ.N), said on Wednesday it has won a contract with the U.S. Department of Homeland Security worth around $678.5 million over 10 years.

Verizon Business said it will provide Internet protocol (IP) and security services, as well as emergency communications services to help the department respond quickly to disasters.

Verizon was the primary winner of the 10-year, $20 billion contract to provide a full range of telecommunications and related network services to the federal government.

Verizon said it will help the 22 agencies that are part of the department combine their separate networks onto a common IP network.

AT&T Government Solutions, a business unit of AT&T Inc (T.N), won a $292 million contract to serve as the secondary network service provider in the Eastern and Western region. (Reporting by Ritsuko Ando and Ilaina Jonas; Editing by Richard Chang and Louise Heavens)