Microsoft is to launch a broadband version of MSN with US communications company Verizon.
The service, built on Verizon's telephone network, is expected to go live next spring and will offer MSN's 7.7 million users with an alternative to current dial-up internet access.
Microsoft will provide content, software and marketing support for the co-branded service, called Verizon Online.
In a statement, Steve Ballmer said the deal will ensure MSN was capable of reaching more households via a DSL connection than any other online service in the US.
The service includes access to MSN Messenger, MSN Hotmail, MSN search as well as broadband content from Disney, E! Online and MSNBC.
Verizon Online is expected to retail at between $39.95 to $49.95.