Could AT&T (T)’s 5G Expansion Give it the Edge Over Telefonaktiebolaget LM Ericsson (publ) (ERIC)?

AT&T (T) reported a consolidated adjusted EBITDA margin increase of 110 basis points to 39.1% in Q2 2026, driven by revenue growth and cost savings. Total revenue rose 2.3% year-over-year, while adjusted EBITDA grew 5.2%. The company aims to discontinue legacy services in over 30% of wire centers by late 2026, targeting $4 billion in annual cost savings by 2028. Fiber ARPU fell 1.3% year-over-year, but AT&T added 147,000 consumer postpaid wireless accounts, its best in over three years.

AT&T has secured a 5-year partnership with the USTA to become the Official Connectivity Provider for the US Open. The company will manage a DAS network and provide connectivity for various on-site services. The deal highlights AT&T's role in enhancing digital infrastructure at major events.

SoftBank and Ericsson's AI-RAN trial improved spectral efficiency by 25% and user throughput by 50%. Google invested $12.18bn in Marvell Technology for custom AI chips. Comsol plans 5G expansion in South Africa. Telekom Malaysia's Q2 revenue rose 6.8% but net profit fell. Negratín and Telefónica trialed IoT solutions. India may disband the Digital Communications Commission. NTT Data and Palo Alto Networks formed a $1bn cybersecurity alliance.

The FAA awarded AT&T a $74.3 million task order for network planning in its air traffic control overhaul, part of a potential multi-billion-dollar, 15-year FENS project. The initiative aims to upgrade telecommunications infrastructure across 4,500 FAA facilities to support NextGen air traffic operations and improve cybersecurity and data exchange.

The FAA is moving toward a long-term network services agreement with AT&T for its FAA Enterprise Network Services (FENS). According to the FAA, an Aug. 11 undefinitized contract includes a $74.3 million task order for early planning and development, tied to a December 2028 air traffic control system target. The eventual IDIQ contract is expected to total multi-billions over up to 15 years.

SpaceX outlined plans for Starlink to compete with T-Mobile, Verizon and AT&T, prompting shares to fall Wednesday and rebound Thursday. T-Mobile CEO Srini Gopalan said the threat is exaggerated. FCC approval of SpaceX deals totaling $19.6B for 65 MHz EchoStar spectrum could expand capacity. SpaceX CEO Gwynne Shotwell said terrestrial buildout is intended. SPXC shares rose to $114.92.