8-KOther Events

AT&T INC. 8-K Report, Corporate Update (Mar 30, 2017)

Filed March 30, 2017For Securities:TT-PCTBBT-PA

Summary

AT&T Inc. (T) announced on March 30, 2017, a significant strategic win: its selection by the First Responder Network Authority (FirstNet) to build and manage the first nationwide broadband network exclusively for America's first responders. This 25-year contract represents a substantial long-term opportunity for AT&T to leverage its infrastructure and expertise. The agreement involves FirstNet providing AT&T with 20 MHz of spectrum and approximately $6.5 billion in success-based payments over five years for network buildout. In return, AT&T anticipates investing around $40 billion over the contract's life for the network's development, deployment, operation, and maintenance. The ultimate scale of the network and AT&T's actual investment will be contingent on the participation of individual states.

Key Highlights

  • 1AT&T selected by FirstNet to build and manage a nationwide public safety broadband network.
  • 2Contract duration is 25 years, signifying a long-term strategic commitment.
  • 3FirstNet will provide 20 MHz of spectrum and $6.5 billion in success-based payments over five years.
  • 4AT&T expects to invest approximately $40 billion over the life of the contract.
  • 5Network buildout, deployment, operation, and maintenance are AT&T's responsibilities.
  • 6The full scope of the network and AT&T's investment are dependent on state participation.

Frequently Asked Questions

FirstNet is an independent authority established by Congress to create, build, and operate the first nationwide, high-speed wireless broadband communications platform for America's public safety community.

AT&T has been selected to build and manage the FirstNet network. This includes all aspects of network development, deployment, operation, and maintenance for the 25-year contract term.

FirstNet is providing AT&T with $6.5 billion in success-based payments over five years and 20 MHz of spectrum. AT&T, in turn, expects to invest approximately $40 billion over the 25-year contract period.

The ultimate reach of the network and the final amount of AT&T's investment over the 25-year period will be determined by how many individual states choose to opt-in and participate in the FirstNet program.