Commerce Department strikes $2B FirstNet deal to boost 5G, reduce costs for public safety

The Department of Commerce and AT&T have reached a $2 billion agreement to upgrade FirstNet, the nation’s public safety broadband network, a move federal officials said will accelerate the deployment of 5G wireless networks, while lowering costs for first responders.

Announced Tuesday by the National Telecommunications and Information Administration, the deal restructures parts of AT&T’s long-term contract supporting the First Responder Network Authority, which oversees the FirstNet public safety communications network. Under the agreement, AT&T will spend roughly $1 billion on network upgrades and expanded coverage, while reducing costs to the government by about $1 billion, freeing up funds that Commerce said it will use to improve FirstNet’s Nationwide Public Safety Broadband Network.

Arielle Roth, NTIA’s administrator, said the funding will help accelerate buildout of a dedicated public safety 5G core and expand mission-critical capabilities shaped by first responder needs.

“We are strengthening the FirstNet contract to unlock additional value for public safety and ensure first responders have the mission-critical connectivity they need,” Roth said in a press release. “This deal delivers real results — expanding coverage, expediting overall 5G buildout for public safety, and adding investment into the Nationwide Public Safety Broadband Network.”

The agreement expands a 25-year contract awarded to AT&T in 2017, to build and operate a network created after communication failures during the September 11 attacks. The system serves more than 30,000 public safety agencies nationwide.

The network is also expected to play a prominent role in high-profile events like the upcoming FIFA World Cup this summer, when host cities like New York and Kansas City, Missouri, will rely on network connectivity to help keep attendees safe.

Howard Lutnick, the Commerce Department secretary, framed the agreement as part of a wider federal push to review contracts and maximize taxpayer value, following President Donald Trump’s executive order that last year pushed agencies to reassess major procurements.

“I am proud to have secured $2 billion in improved value for our nation’s first responders by renegotiating the framework for AT&T’s FirstNet contract — this is a great example of Commerce delivering the Benefit of the Bargain for public safety,” Lutnick said in the release.

The deal arrives as Congress weighs a 10-year reauthorization of FirstNet, placing renewed scrutiny on the program’s governance, performance and long-term funding model. The House Energy and Commerce Committee last week advanced bipartisan legislation that would reauthorize the network through 2037.