Verizon Communications Inc. has swooped in to snatch 5G spectrum holder Straight Path Communications Inc. out of the hands of rival telecommunications firm AT&T Inc. in an acquisition valued at $3.1 billion.

On Thursday, Verizon said it would pay $184 per share for the company in an all-stock deal. The transaction should close in about nine months, pending approval from shareholders and the Federal Communications Commission.

Straight Path is a Virginia-based company that holds nationwide spectrum rights for the 39-gigahertz band, as well as rights to the 28 GHz band in several major U.S. metro areas. ZDNet reported that these high-frequency radio bands are considered essential for 5G networks, as current international requirements stipulate downlink peak data rates of 20 gigabits per second and uplink peak rate of 10Gbps. Straight Path’s ownership of the rights to these bands made it a prime target for acquisition by larger telcos, Reuters reported.

AT&T, Verizon’s archrival, also tried to acquire Straight Path and, until recently, looked as if it had succeeded in this endeavor. In April, AT&T issued a press release saying it had agreed to acquire Straight Path in a $1.6 billion deal. The deal was never finalized as Verizon then started a bidding war for the firm, eventually outbidding its rival by offering almost double AT&T’s original deal.

Both Verizon and AT&T are keen to roll out 5G networks as soon as possible, as this would give them an edge in terms of faster downloads and newer technologies such as self-driving cars.

In a statement, Hans Vestberg, Verizon’s executive vice president of global network and technology, said the deal meant that the company now has all of the pieces in place to hasten its 5G rollout. “Combined with our recent transactions with Corning Incorporated, XO Communications, and Prysmian Group, this is another step to build the next-generation network for our customers,” he said.

The acquisition means that Verizon is positioned well ahead of its peers in access to 5G capable high-frequency frequency holdings, analysts at Jefferies told Reuters.

Straight Path said Verizon will pay out $38 million to AT&T to cover the termination fees on their original acquisition agreement.

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