MSN offers Web services to Charter subscribers

NEW YORK: MSN, Microsoft Corp.'s Internet service provider, said on Thursday
it agreed to provide cable company Charter Communications Inc.'s high-speed
Internet subscribers with a range of its Web services.

The move comes against the backdrop of a fierce competition between MSN and
AOL Time Warner Inc.'s America Online service for subscribers to high-speed Web
services such as music and video. Starting in early 2002, Charter's Internet
subscribers, which totaled 419,000 subscribers at the end of June, will have
access to MSN's Explorer software branded with both MSN and Charter's brand
names.

That software will combine features like the Windows Media Player, which
delivers audio and video programming; the MSN Messenger instant messaging
service; Internet chat features and links to MSN's Hotmail e-mail service.
Financial terms of the deal were not available.

While the deal with Charter is not aimed at adding MSN Internet service
subscribers, but rather to increase the user base for MSN's other services.
"We're trying to help customers see what broadband can deliver to them and
what MSN can deliver to them and hope to have a long-standing relationship with
those customers," said product manager Lisa Gurry.

"Over time, we'll look to ways to offer additional services that are
subscription based," she added. "For example, there could be a service
in the future that allows you to download music from MSN Music for a fee."

MSN is also exploring other possible relationships with other high speed
service providers, Gurry said, although she offered no specific companies or
timetables. In early August, Microsoft forged a deal with telecommunications
provider Qwest Communications International Inc. to offer MSN to Qwest's high
speed Internet subscribers.

AOL, for its part, is preparing to launch its high-speed Internet service on
the Time Warner Cable in the fall. It is also planning to introduce the next
version of its service AOL 7.0 later this year, with features aimed at high
speed users like streaming media.

AOL has deals with several telecommunications companies, like Qwest, Verizon
Communications , SBC Communications Inc. and BellSouth , to provide high speed
Internet services over telephone lines. AOL currently has 31 million subscribers
to its Internet service, while MSN has over 6 million.

(C) Reuters Limited 2001.