NEW YORK - AT&T Inc on Tuesday said it plans to invest $17 billion to $18 billion on capital spending in 2009, with about two-thirds to be used to improve its wireless and wired broadband networks.

The company, which had said in December that it was eliminating 12,000 jobs, also promised that it would add nearly 3,000 jobs in growth areas this year while cutting jobs in its traditional wired phone business.

The new jobs would be added in its wireless, video and broadband business segments, it said.

Chief Executive Randall Stephenson said in a statement that data traffic on its network was growing at an annual rate of about 50 percent a year.

We expect demand will only escalate when the larger economy rebounds, and AT&T's continued strong network investment will help ensure that we're fully ready to support the next wave of economic growth, he said.

The company said it would expand its U-verse video service to pass 30 million home in 2011, up from 17 million.

AT&T also said it would expand its high-speed wireless service to another 20 new markets this year. It said that it currently offers such services in nearly 350 U.S. metropolitan areas. It also said it would add 2,100 new cell sites across the country.

(Reporting by Sinead Carew, editing by Leslie Gevirtz)

AT&T Broadband Jobs