*By Alex Heath* When AT&T Communications CEO John Donovan visited [Magic Leap’s](https://cheddar.com/videos/magic-leap-ceo-spatial-computing-will-be-pervasive-within-decade) campus in Florida, “it felt a lot like circa 2006 with the iPhone.” So AT&T ($T) decided to forge a strategic partnership with the high-profile augmented reality start-up that’s raised more than $2 billion in private funding. The company invested an undisclosed sum in Magic Leap and will be the exclusive wireless provider for its first AR headset, the Magic Leap One. Donovan, a 10-year-veteran of AT&T’s senior leadership who now leads its telecoms and U.S. video services businesses, told Cheddar that the carrier’s partnership with Magic Leap was a strategic move to help showcase its forthcoming 5G network. “We were already in the planning phases of 5G, and this looked like a use case that could come out the shoot and really demonstrate the power of the network,” he told Cheddar in an interview on the sidelines of Magic Leap’s first-ever developer conference on Wednesday. Like its [main competitor Verizon](https://cheddar.com/videos/verizon-ceo-5g-network-is-new-way-to-get-tv-into-your-home) ($VZ), AT&T has been aggressive in building out its 5G network. The company has said that it will launch 5G coverage in 12 U.S. cities this year and announced this week that it will build a 5G zone around Magic Leap’s Florida campus. Because the speed of 5G allows more processing power to be done on the network rather than on a device, Donovan expects the technology to help make future Magic Leap headsets smaller and lighter than the current WiFi-reliant model. Despite his many years in the industry, Donovan said that he’s never seen as much demand for a new network as the 5G one AT&T is working on. “If you think about all the infrastructure, the world is moving from a network that organizes itself around processes and applications,” he said. “And now we’re going to take all that stuff and say it’s now real-time.” The implications of 5G mean that not only will devices like Magic Leap’s futuristic headsets become slimmer, but the technology will also help make things like autonomous vehicles smarter, according to Donovan. “It’s a game changer because it makes all architectures subject to change,” he said. “It changes what you’re able to do because it’s a real time network.”

Share:
More In Business
Minnesota Suit Against E-Cigarette Maker Juul Goes to Trial
Minnesota Attorney General Keith Ellison is slated to lead off opening statements expected for Tuesday in his state's lawsuit against Juul Labs – marking the first time any of the thousands of cases against the e-cigarette maker over its alleged marketing to young people is going to play out in a courtroom.
Lyft to Pick Up New CEO Amid Deepening Post-Pandemic Losses
Lyft co-founders Logan Green and John Zimmer are relinquishing their leadership roles to make way for a former Amazon executive as the ride-hailing service struggles to recover from the pandemic while long-time rival Uber has been regaining its momentum.
Fed Official: SVB Caused Its Own Collapse
The Fed's vice chair for supervision will testify Tuesday that the central bank will look into the possibility that a 2018 law contributed to SVB's collapse by allowing them to keep less cash on hand.
The Day Ahead: Economic Data, Senate Banking Hearing and Earnings
Cheddar News breaks down what to look for on The Day Ahead. Economic data, including Jan. home prices and consumer confidence, are slated to be released while the Senate Banking Committee has a hearing scheduled in the wake of the collapse of Silicon Valley Bank. Earnings from Walgreens, Lululemon and Micron are also expected.
Disney Rolls Out First Round of Layoffs
Disney's first round of layoffs starts this week and will eventually to the loss of about 7,000 jobs after three rounds, according to a memo sent by CEO Bob Iger.
Biden's Pick to Lead FAA Withdraws Amid Shaky Senate Support
President Joe Biden’s choice to run the Federal Aviation Administration has withdrawn his nomination, a setback for the administration that comes after Denver International Airport CEO Phillip Washington appeared to lack enough support in the closely divided Senate.
Load More