AT&T (T) and Amazon (AMZN) have joined hands for a significant partnership under which the telecom will avail satellite internet services from Amazon Leo to offer connectivity to customers in dead zones across the U.S. and, additionally, connect data centers owned by Amazon Web Services with high-capacity fiber, according to a joint statement on Wednesday.
The news has sent shares of rival satellite internet providers Globalstar (GSAT) and AST SpaceMobile (ASTS) crashing down nearly 8% and 12%, respectively.
Formerly known as “Project Kuiper,” Amazon Leo was set up in 2019 to deploy a large satellite internet constellation in lower Earth orbit and offer low-latency broadband connectivity.
“Amazon Leo will provide internet connectivity services to AT&T, enabling AT&T to broaden its connectivity capabilities and deliver fixed broadband services to business customers in areas where such services are needed,” according to a joint statement.
AT&T said it will migrate workloads from several of its current on-premises technologies to AWS’s on-premises as part of its efforts to bolster its network and achieve operational efficiency.
“By pairing our expanding fiber infrastructure with AWS’s cloud capabilities and through our collaboration to deliver the infrastructure of the future by connecting data centers, we’re creating a more resilient, scalable, and intelligent connectivity ecosystem,” said Shawn Hakl, senior vice president, product, AT&T Business.
AWS and AT&T are expected to share more details about their partnership and demonstrate their joint capabilities at Mobile World Congress 2026.