T-Mobile (TMUS.O) announced Thursday that it has been awarded a contract by the U.S. Navy to supply communication technology under a $2.67 billion Spiral 4 contract spanning the next decade. This agreement comes amidst challenges in the telecom sector due to a sluggish wireless market and intense competition.
Under Spiral 4, various agencies within the Department of Defense will be able to procure wireless services and equipment from T-Mobile.
The contract encompasses voice, data, fixed wireless solutions, Internet of Things, and mobility management solutions, supporting connectivity for government operations. T-Mobile’s shares saw slight gains by midday.
Previously, T-Mobile, along with Verizon Communications and AT&T (T.N), secured the five-year Spiral 3 contract worth $994 million in 2017. Other companies, including Echostar (SATS.O), Verizon (VZ.N), and Wide Point, also announced their participation in the recent $2.67 billion contract.
T-Mobile highlighted its collaboration with Elon Musk’s SpaceX, noting that government agencies can utilize SpaceX’s Starlink satellite launched in January, leveraging T-Mobile’s direct-to-cell technology and wireless network capabilities.
