March 31 (Reuters) - AT&T ( T ) has reached a deal to

invest about $1 billion to improve the Commerce Department's

FirstNet and deliver $1 billion in cost savings for the program

via reduced rates, a U.S government agency said on Tuesday.

The telecommunications company was awarded the 25-year

contract to build the federal emergency cellular network

FirstNet in 2017, years after a federal commission recommended

setting up such a system following the 9/11 attacks.

The system, which helps first responders such as medical

personnel, firefighters and police officers communicate vital

information on a single network, is used by 31,000 U.S.

agencies.

The agreement was made possible through U.S. President

Donald Trump's executive order in early 2025, asking federal

agencies to review all contracts, the National

Telecommunications and Information Administration said in a

statement.

"This agreement-in-principle... reflects AT&T's ( T ) ongoing

dedication to our public-private partnership," AT&T's ( T ) President

of Public Sector Wes Anderson said.