AT&T, AWS, and Amazon Leo Collaborate to Modernize Nation’s Connectivity

DALLAS & SEATTLE – February 4, 2026 – AT&T, Amazon Web Services (AWS), and Amazon Leo announced a strategic collaboration to modernize the nation’s connectivity infrastructure and drive cloud-driven innovation for U.S. Businesses. The alliance combines AT&T’s extensive fiber network with AWS’s security, reliability, performance, and AI capabilities, alongside Amazon Leo’s low Earth orbit satellite network.

Key Components of the Collaboration

• Workload Migration to AWS Outposts: AT&T will migrate workloads from on-premises technologies to AWS Outposts, AWS’s managed hybrid cloud offering, to accelerate internal transformation and improve operational efficiency. Source
• AI-Powered Migration: Utilizing Amazon Q Developer and other AWS Agentic Services, AT&T aims to expedite the migration of network service enablement to AWS. Source
• Fiber Connectivity for AWS Data Centers: AT&T will provide high-capacity fiber connections to AWS data center locations, enhancing AWS’s ability to deliver scalable and secure cloud services, particularly for advanced AI applications. Source
• Satellite Connectivity with Amazon Leo: AT&T will collaborate with Amazon Leo to extend its network reach and deliver fixed broadband services to business customers in areas where traditional services are limited. Source, Source

Impact on AT&T’s Investment Narrative

The collaboration supports AT&T’s focus on fiber, 5G, and convergence, potentially offsetting pressures from wireless customer losses and declines in legacy Business Wireline revenues. AT&T plans to reach nearly 60 million fiber locations by 2030. Source The alliance is expected to contribute to AT&T’s goal of achieving $4 billion in cost savings by 2028, improving operating leverage as legacy Business Wireline revenues decrease. Source

Financial Outlook

AT&T is targeting revenue of $130.6 billion and profits of $17 billion by 2028, requiring annual revenue growth of 1.7% and profit growth of $4.3 billion from $12.7 billion. Source

Looking Ahead

This strategic alliance positions AT&T to capitalize on the growing demand for resilient, adaptive, and future-ready connectivity solutions. The integration of fiber, cloud, and satellite technologies is expected to enhance AT&T’s network capabilities and support the evolving needs of businesses across the United States.