AT&T and Amazon Web Services (AWS) are combining their fiber, satellite, and cloud infrastructure to boost enterprise connectivity coverage and performance.
The deal will focus on modernising the operator’s internal network and establishing a reciprocal link to strengthen the cloud provider’s data centre transport. Telecom executives view this as a practical method to merge terrestrial and non-terrestrial networks with hyperscale cloud computing as it tackles the operational need to manage complex environments while monetising connectivity in locations previously seen as commercially unviable.
Operational efficiency through hybrid cloud
AT&T is migrating workloads from legacy on-premises technologies to AWS Outposts. This managed hybrid cloud offering allows the operator to run AWS infrastructure within its own facilities. The project aims to improve operational efficiency and increase the speed of internal updates.
Moving network functions to a hybrid cloud involves complex engineering. AT&T is engaging AWS Professional Services and utilising Amazon Q Developer to assist. The operator is using these agentic services to accelerate the migration of network service enablement. AT&T expects this to improve its resilience posture through better infrastructure management and faster updates to business support systems.
For IT directors, this points to the growing utility of generative AI in code migration. The use of automation tools here suggests that large-scale infrastructure overhauls now rely on AI-assisted development to meet deployment schedules.
Fiber supports AI workloads
The partnership extends beyond AT&T’s internal consumption of cloud services. The operator will connect AWS data centre locations with high-capacity fiber. This infrastructure buildout supports the delivery of cloud services, specifically for customers deploying advanced AI applications at scale.
Shawn Hakl, SVP of product at AT&T Business, said: “This collaboration with AWS marks a pivotal step forward in shaping the future of connectivity in the United States. Fiber is the foundation of that future—it delivers the speed, capacity, and reliability that modern networks demand.
“By pairing our expanding fiber infrastructure with AWS’s cloud capabilities – and through our collaboration to deliver the infrastructure of the future by connecting data centers – we’re creating a more resilient, scalable, and intelligent connectivity ecosystem.”
This part of the deal highlights the link between hyperscalers and network operators. As AI workloads require lower latency and higher throughput, the physical layer provided by carriers remains necessary for cloud application performance.
Extending reach via Low Earth Orbit
The agreement incorporates non-terrestrial connectivity through Amazon Leo, Amazon’s low Earth orbit satellite network. AT&T will collaborate with the satellite provider to deliver fixed broadband services to business customers in locations that current terrestrial networks do not reach.
Integrating LEO satellite connectivity lets operators offer a single service level agreement to enterprise clients with distributed assets, such as logistics hubs or remote industrial sites. It removes the need for businesses to manage separate contracts for primary and backup connectivity in hard-to-reach areas.
Jan Hofmeyr, VP of Telecommunications at AWS, commented: “AWS is working with AT&T to advance their goal of expanding connectivity across the United States. AT&T gains access to AWS’ cloud capabilities and AI tools to accelerate their infrastructure modernisation, while AWS benefits from AT&T’s expertise in high-capacity fiber networking.
“By combining AT&T’s leadership in advanced fiber networking with AWS’s cloud and AI capabilities, we’re creating new opportunities to deliver innovative services to customers nationwide.”
The collaboration indicates that the boundary between cloud providers and network operators continues to fade. Success in the next phase of network deployment relies on making fiber, satellite, and hybrid cloud work together to support enterprise digitalisation.
See also: Russian Luch satellites target European vital connectivity
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