AT&T, the US telecommunications group, agreed to pay $2.35bn in cash as part of a spectrum swap under which AT&T will buy the bulk of the wireless spectrum and other assets that rival Verizon Communications was required to divest as a condition of its recent acquisition of Alltel Wireless.

Under the terms of the agreements, Dallas-based AT&T will acquire licenses, network assets and 1.5m current subscribers in 79 service areas, primarily in rural areas across 18 states. The transaction, which is contingent upon regulatory approval and is expected to close in the fourth quarter of 2009, primarily represents former Alltel assets, but it also includes assets from Verizon Wireless and the former Rural Cellular Corporation.