AT&T Targets Flexibility, Cost Savings With New Network Design

AT&T is planning to rebuild its sprawling network with less expensive, off-the-shelf equipment controlled by software, a move that could cut its capital costs by billions of dollars and put further pressure on telecom gear makers.

The shift will mean the second-largest US carrier will buy less specialized equipment from vendors such as Ericsson, Alcatel-Lucent and Cisco, and instead purchase more generic hardware from a wider variety of producers. That equipment will be tied together with software, making it easier and cheaper to upgrade to new technologies, roll out new services or respond to changes in demand for connectivity. AT&T said it is hoping the new network plan will broaden its pool of suppliers and keep it from being locked into any one vendor at a time when the number of gear makers has withered. Much of the software running the network will be open source, which will allow other carriers and researchers to join the effort to advance its development.