AT&T’s stands to gains significantly from its FirstNet project

All 50 States of the U.S. have agreed to participate in this $6.5 billion nationwide broadband network with U.S. territories, including Guam, Northern Mariana Islands, American Samoa set to confirm their respective participation by the end of March 2018.

Following the recommendation of the federal commission after the 9/11 attacks, the U.S. government had awarded a $6.5 billion contract to AT&T to build a nationwide broadband network for first responders.

Last Friday, AT&T Inc stated all 50 U.S. states had decided to participate in the network.

For the project, known as FirstNet, AT&T, the second biggest wireless carrier in the U.S., will receive 20Mhz of wireless airwaves and depending on the success of the project it will receive its contracted amount over the next five years.

The firm is expected to spend around $40 billion in the next 25 years to build and maintain the network.

U.S. states had until Thursday to opt out of FirstNet.

In addition to the states, Puerto Rico, Washington, D.C. and the U.S. Virgin Islands has also opted in for FirstNet, said AT&T.

Decisions for participating in the network from Northern Mariana Islands, American Samoa and Guam, the three Pacific territories are not due until March 12, 2018.

According to analysts, FirstNet is a means for AT&T to add wireless airwaves to its portfolio. This gains significance since it comes at a time when consumers are increasing their data usage on their mobile devices, which AT&T can fulfill since its FirstNet essentially widens the spectrum it receives from the U.S. government, increases its network capacity when not in use by emergency responders.


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