AT&T announced an agreement to move its 5G mobile network to the Microsoft cloud. The migration starts with the 5G core network and includes a path for all of AT&T’s mobile network traffic to be managed using Microsoft Azure. The deal represents Microsoft's first major win in the telecom market with its Azure for Operators platform.
As part of the contract, Microsoft will acquire AT&T’s carrier-grade Network Cloud platform technology, developed internally by the operator to run its 5G core network. The Network Cloud platform has been running AT&T’s 5G core at scale since the company launched 5G in 2018. This move brings real-world production 5G workloads to Azure for Operators, and the Network Cloud platform engineering team will receive offers to join Microsoft.
Additionally, Microsoft will acquire AT&T engineering and lifecycle management software used to develop and deploy a carrier-grade cloud that runs containerized or virtualized network services. Microsoft will make the platform applicable to other carriers through Azure for Operators and invest in an ecosystem to enable simpler and faster transition of network workloads to the cloud.
AT&T will continue to operate its network and retain its customer relationships. The operator expects to reduce engineering and development costs substantially by switching to the Microsoft infrastructure, while also benefiting from early access to Microsoft’s cloud, AI and edge technology to help launch new services.
For Microsoft, the deal builds on its acquisitions of Affirmed Networks and Metaswitch Networks last year, creating a full platform for telecom operator services. The move helps Microsoft catch up with rival Amazon Web Services, which has already announced several deals to host 5G networks.
Microsoft will assume responsibility for both software development and deployment of AT&T’s Network Cloud immediately and bring AT&T’s existing network cloud to Azure over the next three years. No financial terms of the contract were disclosed.
