AT&T today announced its board of directors has approved an agreement to purchase spectrum licenses covering 196 million people in the 700 MHz frequency band from Aloha Partners, L.P., a Delaware limited partnership.

"Customer demand for mobile services, including voice, data and video, is continually increasing," said Forrest Miller, group president-corporate strategy and development. "Aloha's spectrum will enable AT&T to efficiently meet this growing demand and help our customers stay connected to their worlds."

The transaction enhances AT&T's spectrum position by adding 12 MHz of spectrum covering 196 million people in 281 markets. The spectrum covers many major metropolitan areas, including 72 of the top 100 and all of the top 10 markets in the United States.

AT&T will pay approximately $2.5 billion in cash for the licenses. The company anticipates receiving necessary government approvals and closing the transaction within six to nine months.