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FAA Awards AT&T Multibillion-Dollar Air Traffic Network Deal

August 17, 2026

2 min read

Key Takeaways

FAA awards AT&T initial $74.3 million for air traffic network modernization.
Contract expected to grow into a multibillion-dollar deal.
AT&T to support FAA's air traffic control system overhaul.
Verizon remains in a supporting role.

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Strategic Implications

The FAA's decision to restructure FENS around AT&T may indicate a need for accelerated deployment to meet the 2028 modernization deadline. This move suggests the agency is prioritizing telecommunications in its air traffic control overhaul, which could lead to improved reliability and reduced delays.

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What Happened

Telecommunications Overhaul Accelerates With New Contract

The Federal Aviation Administration has awarded AT&T an initial $74.3 million contract as part of a multibillion-dollar deal to modernize the US air traffic control network. The contract covers work on the FAA Enterprise Network Services, or FENS, which will support the agency’s broader overhaul of the air traffic control system. The FAA previously awarded Verizon a 15-year FENS contract in 2023, but is now restructuring the effort around AT&T to accelerate deployment and meet its 2028 deadline. The agency aims to replace aging radar, telecommunications, software, and hardware by the end of 2028, with telecommunications being a top priority. This development was first reported by AeroTime.

Source | Originally Published: August 17, 2026

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