AT&T Inc and Akamai Technologies Inc said they have agreed to work together on content delivery network (CDN) services, which deliver content faster by avoiding Internet congestion, sending Akamai's shares up 8 percent in early trade.
As part of the agreement AT&T will transfer its existing CDN operations, customers and services to Akamai's platform in 2013, the company said on Thursday.
The pair said they will initially focus on North America and planned to expand globally within 12 months. They will connect Akamai CDN services to AT&T's network and share resources such as technical support and marketing.
Akamai shares were up $2.88 or 8 percent at $38.38 in morning trade on Nasdaq. AT&T shares were slightly lower at $33.87 on the New York Stock Exchange.
(Reporting By Sinead Carew; Editing by Maureen Bavdek and Theodore d'Afflisio)
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