TLDR
- Intel stock drops 5.5% despite AT&T’s continued Xeon 6 usage.
- AT&T keeps RAN hardware flexible with multi-vendor options.
- Open RAN now handles 50% of traffic, targeting 70% by year-end.
- AI and cloud RAN architectures boost network flexibility and performance.
- AT&T’s $23B spectrum buy allows future hardware competition and upgrades.
Intel (INTC) shares dropped 5.51% to close at $43.42 after AT&T reaffirmed support for its cloud RAN platform. The decline comes despite the carrier relying on Intel’s Xeon processors for current deployments. Market reaction reflects broader concerns over hardware competition in mobile networks.
AT&T Maintains Flexibility in RAN Hardware
AT&T confirmed it currently uses Intel’s next-generation Xeon 6 processors for cloud RAN deployments in two U.S. cities. The carrier plans to expand its rollout by the end of this month, leveraging Intel’s Granite Rapids platform. Network architecture emphasizes software flexibility, allowing AT&T to change underlying hardware when needed.
The carrier continues to explore alternative compute options, including AMD, Nvidia GPUs, and tensor processing units. Ericsson, AT&T’s primary RAN supplier, supports deployment on multiple silicon platforms beyond Intel. Software portability ensures AT&T can adjust hardware as customer demands and network use cases evolve.
AT&T’s open RAN strategy enables the company to integrate different vendors into its network. Open-capable hardware already handles 50% of traffic, with a target of 70% by year-end. Vendor competition is encouraged when adding new radios or spectrum bands to the network.
AI and Network Innovation Drive Architecture Choices
AT&T is adopting software-defined and cloud RAN architectures to improve flexibility and speed. AI-native link adaptation tests have been conducted on Intel’s Xeon 6 SoCs to enhance network performance. The software layer enables continuous updates without committing to a single hardware vendor.
The network overhaul follows a $14 billion five-year deal with Ericsson signed in December 2023. Nokia radios are being replaced with Ericsson systems, supporting open RAN and cloud-based management. This approach allows AT&T to integrate multiple vendors while maintaining consistent software control.
The carrier emphasizes the importance of agility as network capabilities evolve rapidly. Continuous innovation is facilitated through software, programmability, and openness. AT&T’s strategy positions it to adopt new technologies, including 6G or advanced spectrum deployments, without hardware limitations.
Spectrum Expansion and Radio Deployment Updates
AT&T recently acquired 3.45GHz midband and 600MHz lowband spectrum from Echostar for $23 billion. The 3.45GHz band is already deployed, while the 600MHz spectrum offers opportunities for new radio suppliers. Each new spectrum integration allows for competitive evaluation of hardware and software options.
Deployment of 1Finity radios on Ericsson basebands is scheduled later this year to expand open RAN coverage. The open architecture ensures flexibility in adding radios or integrating new spectrum efficiently. AT&T’s approach balances cloud RAN performance with cost, power, and customer experience objectives.
Intel’s cloud RAN technology remains central to AT&T’s current network expansion. However, the company’s hardware-neutral strategy highlights the potential for future shifts in compute platforms. Stock movements indicate the market’s sensitivity to broader network competition rather than current vendor confidence.
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