AT&T has agreed to buy wireless spectrum and assets from retail wireless operator Atlantic Tele-Network (ATN) for $780 million.

The wireless properties include licences, network assets, retail stores and around 585,000 subscribers. AT&T will acquire spectrum in the 700MHz, 850MHz and 1.9GHz bands to complement its existing network.

ATN operates under the Alltel brand and its CDMA network covers around 4.6 million people in mainly rural areas across Georgia, Idaho, Illinois, North and South Carolina and Ohio.

AT&T will convert and upgrade the network and expects ATN and AT&T customer roaming in these areas to enjoy improved mobile internet service once this has been completed.

The transaction is subject to approval by the Federal Communications Commission, Department of Justice and other customary closing conditions. The deal is expected to be concluded in the second half of the year.