The U.S. Treasury has cancelled a $1bn (£540m) communications contract with AT&T. The move follows complaints about the bidding process and investigations by the US Government Accounting Office (GAO).

MCI, Qwest and Level 3 were among the rival bidders who complained.

The GAO then launched its investigation into the the three-year deal.

Although the contract was awarded only last December, the Treasury will now have go through alternative government procurement processes all over again.

AT&T indicated that it intends to try and win in the new bidding process.

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