AT&T (NYSE: T) is getting serious about getting into the CDN business to compete with the likes of Akamai (NSDQ: AKAM) and Limelight and has created a new group. AT&T has named Cathy Martine, EVP-Content Distribution, to lead AT&T’s enterprise digital media efforts and this group.

CDN business is not necessarily new for the company: it has customers like Forbes.com and AccuWeather.com; but now it says it will be selling more of these services to help companies deliver digital media to consumers’ PCs and mobile phones...so in essence, a more digital media focus. It has tied up with software companies such as ExtendMedia, Qumu, and Stratacache to help in packing and delivery of the content.

AT&T also said it will spend nearly $70 million by the end of the year to bolster its network infrastructure across the United States, Europe and parts of Asia. Curious as to whether any of the money will be used for acquisitions...market chatter over the last few months include possibly buying out Limelight (NSDQ: LLNW). Details in the new unit in release.

Disclaimer: Akamai and Limelight are sponsors of our sites.