AT&T signs deal worth $2 billion to upgrade emergency cellular network

AT&T will invest about $1.0 billion to upgrade the Commerce Department's FirstNet and has agreed to deliver an additional $1.0 billion in program cost savings via reduced rates, according to a U.S. government agency. The deal should improve public-safety broadband infrastructure and modestly benefit AT&T's government-related revenue profile while lowering FirstNet operating costs.

Analysis

AT&T will invest about $1.0 billion to upgrade the Commerce Department's FirstNet and has agreed to deliver an additional $1.0 billion in program cost savings via reduced rates, according to a U.S. government agency. The deal should improve public-safety broadband infrastructure and modestly benefit AT&T's government-related revenue profile while lowering FirstNet operating costs.