Verizon has agreed to sell its licence for its lower 700 MHz wireless spectrum to AT&T for $1.9 billion. In return Verizon will receive AT&T licences for 10 MHz spectrum in Los Angeles, Phoenix, Portland and Fresno.

The lower 700 MHz wireless spectrum currently covers 42 million customers across 18 US states.

The deal will have to meet approval from the US Federal Communications Commission (FCC) and the Department of Justice.

Verizon has also agreed to sell lower 700 MHz licenses in specific areas, to private-equity firm Grain Management for $189 million.