By Dhirendra Tripathi

Investing.com – Verizon (NYSE:) stock and AT&T stock (NYSE:) both rose in Tuesday’s premarket trading on hopes of an amicable settlement with U.S. authorities and airlines over the launch of new 5G services.

Both companies agreed Monday that they would delay rolling out a 5G service to the public until January 19, despite initially disregarding the Department of Transportation’s advice. It is anticipated that this will give regulators enough time to resolve safety concerns at airports due to 5G operators using new frequencies. The telecom companies have agreed to cut the power for their 5G service over the previously established levels.

Federal Aviation Administration (FAA) had been prepared to issue flight restrictions, which would have affected both passenger and cargo aircraft in the country. At least for now, this possibility has been ruled out.

Verizon was up 0.5% and AT&T was up 0.3% in response.

Telecom companies need to launch new 5G services in order to make a return on billions invested in network infrastructure and spectrum bands.  

According to reports, lobby group Airlines for America had planned to appeal to a federal court to block Wednesday’s 5G rollout, concerned that it could interfere with cockpit safety systems.

Interference among spectrum bands used for different services by different end users is a problem that has been around since the beginning, especially with airlines and telecom providers.