Amazon.com, Inc. (NASDAQ: AMZN) revealed on Wednesday a significant collaboration with AT&T Inc. (NYSE: T) and Amazon Web Services (AWS) to modernize and enhance the connectivity infrastructure across the United States. This effort combines the strengths of AT&T’s broad fiber network with the advanced cloud technologies offered by AWS, aiming to reshape the connectivity landscape through an integrated approach that capitalizes on both cloud computing and fiber optic advancements.
This partnership entails several key components designed to bolster connectivity solutions. Primarily, AT&T will transition its workloads, previously managed through on-premises technology, to the AWS hybrid cloud environment via AWS Outposts. This migration is intended to leverage the scalability and flexibility of AWS’s cloud infrastructure, enabling AT&T to streamline operations and foster a more adaptive service environment.
Furthermore, AT&T plans to enhance the physical infrastructure by extending high-capacity fiber connections to AWS data center locations. This fiber expansion is expected to sustain greater data throughput and reliability, which are critical for delivering robust cloud services and meeting the growing demand for bandwidth-intensive applications.
An additional element of this collaboration involves Amazon Leo, Amazon’s low Earth orbit (LEO) satellite network. By integrating satellite-based internet services, Amazon Leo will augment AT&T’s connectivity reach, providing fixed broadband capabilities in regions where terrestrial fiber infrastructure may be limited or unavailable. This connectivity expansion aligns with broader industry efforts to address persistent coverage gaps in underserved areas.
The overarching goal of the alliance is to develop a connectivity framework that is resilient, efficient, and adaptive to evolving technological requirements. Integrating AT&T’s fiber network with AWS’s sophisticated cloud and artificial intelligence (AI) technologies is poised to improve infrastructure management and expedite the modernization of AT&T’s business support systems, which are essential for maintaining competitive and scalable network services.
Shawn Hakl, Senior Vice President of Product at AT&T Business, emphasized the critical role of fiber in the future connectivity landscape, highlighting its capacity to provide the speed, reliability, and bandwidth necessary for supporting modern network demands. Complementing this perspective, Jan Hofmeyr, Vice President of Telecommunications at AWS, noted that the collaboration yields mutual advantages by combining AWS's cloud expertise with AT&T's fiber network capabilities.
Through Amazon Leo’s satellite technology, the partnership extends AT&T’s broadband internet access into areas traditionally underserved by fiber infrastructure. This integration exemplifies Amazon's strategic initiative to enhance global internet accessibility and showcases innovative solutions for expanding coverage beyond conventional means.
The progress and impact of this collaboration are scheduled to be showcased at the Mobile World Congress 2026. At this event, AWS intends to demonstrate how AT&T is leveraging AWS Outposts and AI-driven solutions to optimize operational processes and streamline network management.
In market response, Amazon.com’s shares experienced a modest increase of 0.33%, trading at $239.40, while AT&T stocks rose by 0.75% to reach $27.03 in pre-market activity on the day the announcement was made.