AT&T has revealed its $14 billion contract with Ericsson helped in modernizing its nationwide network operations, addressing rising data demands and sustainability challenges.
This large-scale initiative integrates Open RAN and Cloud RAN technologies, software solutions, and supply chain optimization, setting new benchmarks for energy-efficient telecommunications.
Dyon Agnew, Head of Customer Unit, AT&T at Ericsson, said that the collaboration demonstrates how sustainability and operational excellence can work together, establishing industry benchmarks for both performance and environmental responsibility.
Meeting Growing Data Demands with Sustainable Innovation
Telecommunications providers face an unprecedented challenge—balancing explosive mobile data growth with the need to control operational costs and carbon emissions. According to Ericsson’s Mobility Report, North American mobile data traffic more than doubled between 2019 and 2024. At the same time, energy costs have risen sharply, accounting for 15–40 percent of telecom operating expenses.
AT&T’s modernization project, powered by Ericsson, is designed to meet these dual challenges by delivering superior customer experiences while lowering environmental impact.
Key Highlights of the AT&T–Ericsson Partnership
$14 billion investment in advanced infrastructure modernization.
20 percent annual energy efficiency gains while managing nearly double the network traffic.
$28 million in annual savings from energy-efficient software in 2024.
22,963 metric tons of carbon emissions avoided annually, equivalent to removing 5,360 cars from the road.
Mike Watson, Vice President of Technology Operations and Business Supply Chain at AT&T, said the modernization initiative is focused on speeding up AT&T’s network transformation by adopting efficient technologies and operations that improve customer experience.
Ericsson’s Technology Solutions Powering AT&T’s Network Transformation
The modernization includes next-generation hardware and software upgrades:
Hardware Innovations
Advanced Radio Platforms: Delivering 20 percent higher energy efficiency compared to earlier generations.
Dual and Tri-Band Radios: Reducing tower equipment needs and simplifying deployments.
Massive MIMO Radios: Managing 5G traffic growth without increasing power consumption.
Cloud RAN Architecture: Enabling flexible resource allocation and faster scaling.
Software Enhancements
Micro Sleep TX: Automatically deactivates idle transmissions during low traffic.
AI-powered Radio Applications (rApps): Optimize network performance and energy use.
Cloud Log Analyzer Tool (CLAT): Improves equipment testing efficiency.
Tangible Business and Environmental Results
AT&T’s modernization strategy has already delivered measurable business and sustainability benefits:
22–25 percent reduction in power consumption through radio equipment upgrades.
22,963 metric tons of carbon emissions avoided annually, including:
2,900 tons avoided via Digital Twin technology eliminating site visits.
323 tons avoided through direct shipping to vendors.
19,740 tons avoided by shifting repairs to North America.
2.6 million transportation miles eliminated annually, streamlining logistics and reducing fuel emissions.
Todd Zeiler, Vice President of Network – Wireline and Wireless Access Construction and Engineering (East Region) at AT&T, said the strategy is designed to improve customer network experience by expanding capacity, coverage, and performance while simultaneously ensuring operational efficiency.
Future-Ready, Energy-Efficient Telecom Infrastructure
By integrating advanced radio platforms, cloud-native architectures, AI-driven optimization, and supply chain sustainability, AT&T and Ericsson are shaping the future of energy-efficient telecommunications.
Baburajan Kizhakedath
