FAA shifts air traffic network contract to AT&T in multibillion-dollar deal

The Federal Aviation Administration has redirected a major piece of its air traffic control modernization program to AT&T, the agency said. The initial award is valued at $74.3 million and is expected to grow into a multibillion-dollar contract over time.

The deal covers early work on FAA Enterprise Network Services, known as FENS, the communications backbone meant to replace the aging FAA Telecommunications Infrastructure network. That network has been in use for more than twenty years, linking air traffic facilities and other operations across the national airspace.

Verizon had previously won a 15-year FENS contract in 2023 worth over $2 billion, agreeing to design, build and maintain the FAA's next-generation communications platform. Under the new arrangement, the agency said it is restructuring the program around AT&T to speed up deployment. Verizon continues in a supporting capacity.

The shift comes as the FAA pushes forward with what it calls a wholesale rebuild of air traffic control infrastructure, covering radar, software, hardware and telecommunications, with a target completion date of the end of 2028. The agency described telecommunications as one of its top priorities, since it ties together the entire national airspace system. More than a third of old copper infrastructure has already been swapped for high-speed fiber, it said.

The broader modernization plan calls for more than 5,000 new high-speed network connections using fiber, satellite and wireless links. It also includes tens of thousands of new radios, hundreds of digital voice switches and hundreds of new radar units. The agency said the aim is to improve reliability and cut delays tied to outdated equipment. It noted that flight-delay minutes linked to equipment failures in 2025 were roughly three times higher than in prior years.