The deal comes as the company faces calls from activist investor Elliott Management to end its acquisition spree and focus on improving its business.
“This transaction is a result of our ongoing strategic review of our balance sheet and assets to identify opportunities for monetization,” Chief Financial Officer John Stephens said in a statement.
Media had reported earlier that AT&T was exploring a sale for its Puerto Rico assets for $3 billion to cut the debt it took on to purchase Time Warner Inc for $85 billion last year.
“Reports that we originally sought $3 billion for these assets are not accurate,” a company representative said. “That was never our expectation and that valuation wouldn’t have reflected the value of the assets or the market for such assets.”
AT&T’s long-term debt stood at $157.79 billion as of June end, according to a regulatory filing.
The company has already sold its stake in streaming service Hulu for $1.43 billion and WarnerMedia’s Manhattan offices at Hudson Yards for about $2.2 billion.
AT&T expects the deal to close in the next nine months subject to review by the U.S. Department of Justice and Federal Communications Commission.