March 31 - AT&T has agreed to a package that includes approximately $1 billion in investment to enhance the federal emergency cellular network FirstNet, and an additional $1 billion in anticipated program savings achieved through lower rates, a U.S. government agency said on Tuesday.
FirstNet, a public-private network designed to ensure first responders have a dedicated communications channel, was awarded to AT&T under a 25-year contract in 2017. The system supports communications for medical personnel, firefighters and police officers, and is currently used by 31,000 U.S. agencies.
The National Telecommunications and Information Administration said the understanding was made possible after a presidential executive order issued in early 2025 instructed federal agencies to review all contracts. The agency described the outcome as an agreement-in-principle reached between the parties.
In response to the announcement, AT&T’s President of Public Sector Wes Anderson said: "This agreement-in-principle... reflects AT&T’s ongoing dedication to our public-private partnership." The statement highlights AT&T’s role in delivering network services tailored to emergency-response needs.
Officials characterized the package as matching investment in network improvements with contractual changes that would lower rates for the FirstNet program, with the two elements together totaling about $2 billion in value. The government agency released the information as part of its summary of the discussions between the parties.
As structured in the original contract, AT&T has been operating FirstNet for multiple years under the 25-year arrangement awarded in 2017. The network’s stated purpose is to provide a single, interoperable communications platform to support urgent information exchange among public-safety entities across the United States.
Key points
- AT&T will invest about $1 billion into FirstNet network improvements and is expected to deliver roughly $1 billion in program cost savings through reduced rates.
- FirstNet is a 25-year contract awarded to AT&T in 2017 and is used by 31,000 U.S. agencies to support first-responder communications.
- The agreement-in-principle was enabled by a presidential executive order in early 2025 that directed federal agencies to review contracts, according to the National Telecommunications and Information Administration.
Risks and uncertainties
- The announcement is described as an "agreement-in-principle," indicating that final terms may still need to be negotiated or formalized - this affects public-safety agencies and the telecommunications sector.
- The deal’s existence was tied to an executive order prompting contract reviews; changes in administrative policy or further review outcomes could influence implementation - this carries implications for federal procurement and telecom service providers.
- Long-term performance relies on the 25-year contractual relationship established in 2017; ongoing service delivery and execution of upgrades will be material to agencies that depend on FirstNet.