AT&T has said it wants to expand its business of delivering online media, moving into more direct competition with specialised content delivery companies like Akamai Technologies and Limelight Networks.

As more companies launch websites with video and interactive features, AT&T said it will spend nearly $70 million by the end of the year to bolster its network infrastructure across the US, Europe and parts of Asia.

AT&T said it is creating a new business unit focusing on content delivery. The company said its strength is in its international reach and experience dealing with security issues.

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