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Major telecommunications players Verizon Communications Inc (NYSE:VZ) and AT&T Inc (NYSE:T) are in conflict over a proposal to enhance services for emergency responders, a move that the former claims would result in a $14 billion advantage for the latter.
AT&T and its partners are urging regulators to allocate more wireless frequencies to FirstNet, a network established in 2017 to support emergency services.
AT&T holds a 25-year contract to manage FirstNet for the federal government, according to a report from the Wall Street Journal.
Competitors argue that the proposal would allow AT&T to use these airwaves for commercial purposes without cost.
Verizon, which competes for public safety contracts, called the plan a significant windfall for AT&T.
The Federal Communications Commission (FCC) will decide on the allocation. FCC Chairwoman Jessica Rosenworcel indicated that the focus is on how public safety agencies will manage these airwaves in the future.
FirstNet was created to address communication issues faced by emergency workers during the 9/11 attacks.
AT&T won the contract to build and maintain the network, leveraging its existing infrastructure for both public safety and commercial use.
The proposal involves expanding FirstNet’s access to a new spectrum band above 4.9 gigahertz.
Verizon and other groups advocate for keeping this spectrum available to state and local authorities rather than exclusively for FirstNet.
AT&T and its supporters, including various public-safety associations, argue that emergency responders require 5G to handle modern data needs. They claim FirstNet can provide this service more effectively than fragmented local systems.
FirstNet has invested approximately $6.5 billion in AT&T to develop and maintain the network, with plans to invest another $6.3 billion over the next decade. AT&T must repay the government $18 billion over the contract’s life.
Government audits have raised concerns about the contract’s oversight and modifications that prevent penalties for missed deadlines.
Price Action: VZ shares are trading lower by 1.17% at $40.95 at the last check on Monday.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by JeepersMedia on Flickr
