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Microsoft, Qwest team
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May 17, 2000: 8:13 a.m. ET
Phone services company to provide Internet access to MSN users
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NEW YORK (CNNfn) - Telecommunications service provider Qwest Communications announced Wednesday that it will provide Internet access to users of Microsoft's MSN portal in a multi-year, multi-million dollar deal.
Specific financial terms were not disclosed.
Qwest (Q: Research, Estimates) will offer Microsoft's (MSFT: Research, Estimates) MSN subscribers local dial-up Internet access using Qwest's national Internet protocol (IP) network. Access will be provided by the end of June, and will enable dial-up Internet connectivity via modems with speeds of up to 128 Kbps.
In a separate deal announced Wednesday, Denver-based Qwest said it will also supply high-speed Internet access links to Microsoft's Internet data centers and also to London through KPNQwest (KQIP: Research, Estimates), the company's joint venture with Dutch telecommunications concern KPN. The companies said the venture will boost capacity of MSN's Internet access and further MSN's ability to deliver its services to users.
Qwest is set to merge with US West Inc. (USW: Research, Estimates) in a $36 billion deal that has been marred by animosity between the two giant telecommunications providers, but is expected to close in mid-2000.
In Tuesday trading, shares of Qwest closed down 3/16 at 47-1/4, while Microsoft stock gained 1/8 at 69-1/2.
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