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WorldCom wins State Department deal

The federal government awards the struggling telecommunications giant a contract worth up to $360 million over 10 years.

The State Department has awarded WorldCom a 10-year communications contract worth up to $360 million, the company said Thursday.

WorldCom will supply services related to international private lines, satellites, Internet Protocols and asynchronous transfer mode (ATM) protocols to various State Department agencies worldwide. WorldCom will also be the preferred provider for new State Department communications programs.

The telecommunications giant filed for bankruptcy in July and named former Hewlett-Packard president Michael Capellas as its CEO in November. He replaced former CEO Bernie Ebbers, who left in April.

The bankruptcy filing did hurt some of the company?s federal accounts. WorldCom was in the running for a Federal Aviation Administration contract worth a possible $3.5 billion. WorldCom had been the incumbent on that contract, but the new deal went to international communications equipment company Harris.