Lockheed Martin Corp beat out Boeing Company to win a $766 million contract to develop a next-generation radio system for aircraft, ships and ground stations, the Pentagon announced on Friday.

Pentagon acquisition chief John Young approved the start of development of the next phase of the Joint Tactical Radio System program earlier this week, paving the way for Friday's contract announcement.

A later production contract could translate into business deals for the winning bidder valued at $10 billion or more over the long term, defence analysts have said.-Reuters