AT&T (T) stock rose 2.11% to $23.55 in late-morning trading following the announcement of a major network agreement with Ericsson. The deal will support AT&T's deployment of newly acquired 600 MHz spectrum across its nationwide wireless network, with the expansion aimed at improving coverage, speed, call reliability, and network capacity across both urban and rural markets.

Ericsson Deal Advances 600 MHz Deployment

AT&T has selected Ericsson to supply dual-band radios for its planned 600 MHz rollout. The equipment will enable the carrier to use low-band spectrum more efficiently across existing tower sites, while the deployment will extend signal reach and improve indoor service in difficult coverage areas.

The 600 MHz spectrum was acquired by AT&T from EchoStar to strengthen its low-band wireless holdings. Low-band frequencies travel farther than higher bands and perform better penetrating walls and other structures, allowing the spectrum to support stronger service at homes, offices, along roads, and in remote locations. Rival T-Mobile has been the largest holder of 600 MHz spectrum since the FCC's 2017 broadcast incentive auction, using it extensively for its nationwide 5G rollout. AT&T's EchoStar acquisition narrows that advantage, giving the carrier additional low-band capacity to compete on coverage breadth.

Ericsson's radios will also introduce 8RX uplink technology across AT&T's low-band network. The system improves connections from customer devices back to nearby towers, and AT&T expects better network response during uploads, calls, and real-time mobile activity as a result.

Modernization Delivers Faster and More Reliable Service

AT&T has completed more than 60% of its wider wireless network modernization program. Upgraded Ericsson infrastructure has already produced measurable gains across selected service areas, with average speeds doubling in some markets following the installation of newer radio equipment.

Call performance has also improved, as dropped and blocked calls declined by 10%. Slower data events fell by as much as 70% in areas with modernized infrastructure, providing customers with more stable service during busy periods and demanding mobile use.

AT&T has also standardized equipment placed at the top of many cellular towers. That work may reduce uplink interference by as much as 80% across upgraded locations, enabling the network to carry more traffic while maintaining stronger and more consistent connections.

Open RAN Strategy Supports Future Network Growth

The new agreement builds on AT&T and Ericsson's earlier Open RAN collaboration, first announced in late 2023 as a multi-year commitment. Open RAN gives operators greater flexibility in choosing and managing network equipment, and AT&T plans to leverage that approach while expanding capacity and simplifying future upgrades. The partnership is part of a broader industry shift toward vendor diversification and interoperable network architectures that reduce reliance on single suppliers.

The modernization program also positions AT&T for rising demand from advanced digital services, as customers increasingly use mobile networks for content creation, cloud access, and live communication. The carrier therefore needs greater capacity, lower interference, and faster network response across more regions.

AT&T has included the expected spending within its second-quarter 2026 financial outlook and capital allocation plan. The company will announce deployment timing and commercial availability at a later date. In the meantime, the Ericsson agreement provides a clear path for AT&T's next phase of network expansion.