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AT&T Inc. will buy wireless Internet provider Wayport Inc. for $275 million as the company looks to expand its network of Wi-Fi access.

Wayport, a closely held company, operates about 10,000 Wi-Fi hotspots in Wyndham, Marriott Vacation Club and Four Seasons hotels, as well as McDonald's restaurants.

AT&T has its own Wi-Fi hotspots as well. The deal will take its total to 20,000 in the U.S. and 80,000 globally, counting providers with which it has roaming agreements.

AT&T executive John Stankey said the deal comes as the company is seeing "exponential growth" of Wi-Fi enabled defices, such as smartphones.

Along with other phone companies, AT&T has been hurt by the downtrodden housing market and the weakening economy, as customers cut out their home phone lines or build homes without home phones. The move to expand Wi-Fi access points could help the company offset some of those declines.

The deal is expected to close as early as the fourth quarter.

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