Intermedia Secures Multi-Million Dollar Contracts with Three States

Strategic Insights -

Intermedia Communications Inc., a Tampa-based company, has secured contracts with three states, including Florida, valued at over $76 million. The contracts, set to span five years, will significantly boost Intermedia's revenue and revenue growth. The company, ranked among the nation's fastest-growing independent telephone companies, has also secured contracts with New Jersey and Maryland, further solidifying its position as a major player in the nation's telecommunications business.

Key Takeaways:

  • Intermedia Communications Inc. won two contracts worth a total of $76 million to supply the state of Florida with toll-free calling services and an Internet-like method for accessing information from the state's scattered agencies.
  • The contracts are spread over the next five years and are expected to add about $100 million in new revenue to Intermedia's bottom line during the same period.
  • Intermedia also announced a contract to provide private Internet access to the state of New Jersey and a fourth contract valued at $600,000 with the state of Maryland for microwave transmission services for linking its public television network.
  • The Florida contracts are expected to save taxpayers about $5 million over the life of the contracts, which is roughly 40 percent of what the state pays for toll-free services and computer access to government data.
  • The contracts are a sign of Intermedia's growth and its position as a major player in the nation's telecommunications business, according to Robert J. Veneable, of Robert W. Baird & Co. in Milwaukee.
  • Intermedia Chairman David C. Ruberg stated that the contracts represent a significant revenue opportunity and also provide value for taxpayers.

Statistics:

  • $76 million: Total value of two contracts won by Intermedia in Florida
  • $100 million: Expected new revenue from the Florida contracts
  • $5 million: Estimated savings for taxpayers in Florida over the life of the contracts, which is roughly 40 percent of what the state pays for toll-free services and computer access to government data
  • 5 years: Duration of the Florida contracts
  • $600,000: Value of contract with the state of Maryland for microwave transmission services
  • N/A: Value of New Jersey contract (amount undisclosed)

Sources:

  • "Tampa - Intermedia just keeps growing and growing", Unknown publication date
  • Robert J. Veneable, of Robert W. Baird & Co., stated that Intermedia is "a major player on the data services side" of the nation's telecommunications business
  • Robert W. Baird & Co. is not explicitly dated in the source, so it will remain without date information.