Facing Uncertain Defense Market, Wireless Contractors Seek to Diversify
Posted on: January 9, 2014

National Defense
Sandra Erwin
January 9, 2014

The Defense Department for years has been the federal government’s biggest buyer of wireless communications systems. Many tech firms, however, see a stagnant military market and are turning their attention to new opportunities such as an upcoming multibillion-dollar project to build a nationwide network for emergency responders.

A projected slowdown in the military wireless sector is partly a consequence of tighter budgets. Another obstacle is a shortage of radio-frequency spectrum, which limits how much new wireless equipment the military can buy and operate.

The automatic budget cuts known as the sequester and last year’s government shutdown created an “extraordinarily difficult” environment for federal technology contractors, said Kevin Kelly, CEO of LGS Innovations LLC, in Herndon, Va.

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