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AT&T to Resell Amazon Leo Satellite Service, Adds Third Network Layer

AT&T says the partnership will improve service reliability by adding a satellite layer to its fiber and 5G network, supporting an investor buy case tied to low valuation and a high dividend.

Overview

  • AT&T confirmed a deal to become the first U.S. telecom to offer broadband via Amazon’s low-Earth-orbit (LEO) satellite network, Amazon Leo, as a sold service through its channels.
  • The company frames the move as completing a three-layer network—fiber, 5G and satellite—to give customers a more resilient connection when one link is disrupted.
  • Investors had punished AT&T over the past year with roughly a 12% decline while the S&P 500 rose, a gap that the recent strategic steps and share-price recovery have begun to narrow.
  • Financial metrics cited in market commentary show AT&T trading under nine times trailing earnings and paying about a 4.3% dividend yield, figures that analysts say underpin a buy argument.
  • The deal reduces the threat posed by standalone LEO providers in AT&T’s telling and could shift competition toward bundled service offerings, with potential gains for customers in outage-prone areas and new revenue for the carrier.