AT&T said on Tuesday it has agreed to purchase certain wireless spectrum licenses from EchoStar for about $23 billion, as the U.S. telecom giant scales its network to stay ahead in a competitive market.

Shares of satellite communications firm EchoStar jumped more than 82% in premarket trading.

The deal advances AT&T's investment plans to accelerate its fiber and 5G network build-out as the wireless market saturates and internet usage surges.

The licenses cover more than 400 markets across the U.S. in total and will strengthen AT&T's low-band and mid-band spectrum holdings, the company said.

The companies also agreed on Tuesday to expand their network services agreement, enabling EchoStar to operate as a hybrid mobile network operator (MNO) providing wireless service under the Boost Mobile brand. AT&T will be the primary network partner.

AT&T also reiterated its 2025 financial guidance and said it intends to finance the spectrum purchase with cash on hand and incremental borrowings.

In May, the wireless carrier clinched a deal to acquire Lumen Technologies' LUMN.N consumer fiber operations for $5.75 billion in cash.