Microsoft upgrades MSN

SEATTLE: Microsoft Corp. unveiled early upgrades to its MSN Internet service that the No. 1 software maker hopes will attract more high-speed broadband Internet subscribers.

The new versions, called MSN Premium and MSN Plus, extend Microsoft's strategy of offering the MSN Internet browser and associated services separately from Internet access.

Microsoft's money-losing MSN unit has long competed against AOL Time Warner Inc. unit America Online for dial-up subscribers, but has shifted its strategy over the past year to get customers to pay for MSN's features and services separately as more people sign up for broadband access.

"We see that this is where the future of our MSN service lies," said Lisa Gurry, MSN's lead product manager.

Microsoft isn't providing broadband access directly, leaving that up to cable and telephone companies. The aim is for users to pay for enhanced MSN services in addition to services offered by their high-speed access provider.

MSN Premium, which is still in beta, or test mode, will formally launch later this year at a price of $9.95 per month. MSN said pricing for MSN Plus, which is geared toward single users, would be announced at a later date.

MSN Premium, targeted at families with broadband Internet access, includes tools for managing e-mail, parental controls, calendars and digital photos as well as anti-virus and anti-spam software.

As Internet users shift from slower dial-up access to faster Cable and DSL (digital subscriber line) broadband connections, Microsoft is betting consumers will still want features and services similar to those provided by MSN and AOL, but geared toward high-speed services.

Microsoft has partnered with several broadband providers, including Charter Communications Inc., Verizon Communications Inc. and Qwest Communications International Inc. to deliver MSN services.

© Reuters