Verizon DSL to mingle with MSN

Verizon Communications announced a broadband service deal with Microsoft on Thursday that combines Verizon's digital subscriber line (DSL) network with the software giant's MSN portal. "You can think of it as a strategic alliance, but it's actually a new service," said Microsoft Chief Executive Steve Ballmer on a conference call to discuss the agreement. The companies said they will create a new type of DSL experience: giving subscribers services and content with their high-speed Internet access. MSN's content, instant messenger service and Hotmail e-mail service will all be part of the deal. The companies said they would share revenues from the new service, but declined to give specific financial terms. When the Verizon service is introduced in early 2003, MSN 8.0 features will be co-branded for Verizon subscribers, and there may be special promotional offers and features, said Lisa Gurry, a product manager at MSN. The service will vary in price from $39.95 and $49.95 per month, depending on the customer's location. Verizon's DSL service is $49.95 a month, with the first three months priced at $29.95 a month. MSN also offers a broadband service for $49.95 a month, in partnership with SBC Communications, BellSouth and Qwest Communications International. --Tiffany Kary, Special to ZDNet News