Verizon Given $10 Billion Contract After Records Release

By:  Joe Wolverton, II, J.D.
08/19/2013
       
Verizon Given $10 Billion Contract After Records Release

Verizon announced August 16 that the Department of Interior awarded it a $10 billion contract.

Verizon’s willingness to give the federal government unfettered access to its customers’ phone records is paying off handsomely for the telecommunications giant.

Verizon announced on August 16:

The U.S. Department of the Interior has selected Verizon to participate in a $10 billion, 10-year contract to provide cloud and hosting services. This is potentially one of Verizon's largest federal cloud contracts to date.

Verizon is one of 10 companies that will compete to offer cloud-based storage, secure file transfer, virtual machine, and database, Web, and development and test environment hosting services. The company is also one of four selected to offer SAP application hosting services.

Each of the 10 agreements awarded under the Foundation Cloud Hosting Services contract has a potential maximum value of $1 billion.

Put simply, not only has Verizon not suffered a loss of customers since revelations of its collusion with the National Security Agency’s dragnet surveillance of millions of Americans’ phone records, but now the company is being paid billions for its cooperation.

The press release issued by Verizon boasts of its buddy-buddy relationship with departments of the federal government.

"Verizon has a history of successfully providing advanced networking and security solutions to the Department of the Interior," said Susan Zeleniak, senior vice president, public sector markets, Verizon Enterprise Solutions. "The Foundation Cloud Hosting Services contract represents an expansion of Verizon's engagement with the department and will enable it to leverage Verizon's significant cloud investments and expertise to help the department achieve its long-term objectives."

Verizon's participation in the construction of the Panopticon is well known.

According to a court order labeled "TOP SECRET," federal judge Roger Vinson ordered Verizon to turn over the phone records of millions of its U.S. customers to the National Security Agency (NSA).

The order, issued in April by the U.S. Foreign Intelligence Surveillance Court and leaked on the Internet by the Guardian (U.K.), compels Verizon to provide these records on an “ongoing daily basis” to hand over to the domestic spy agency “an electronic copy” of “all call detail records created by Verizon for communications (i) between the United States and abroad; or (ii) wholly within the United States, including local telephone calls.”

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Photo: AP Images

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