Associated Press
SEATTLE — Microsoft’s MSN division will provide Internet access and services for Verizon Wireless phone customers starting today, in a revenue-sharing deal that could bring millions more visitors to the MSN network.
MSN will receive a portion of the $6.95 a month that Verizon Wireless customers pay for Internet access, said Lisa Gurry, MSN product manager. She would not disclose further financial details.
Verizon Wireless has 30 million customers, although spokesman Jeffrey Nelson said he did not know how many customers currently use wireless data services.
But the carrier faces stiff competition from AT&T Wireless, which recently launched its mMode Internet service, as well as other carriers including Sprint PCS.
The MSN deal means that Verizon customers can use Hotmail and MSN’s instant-messaging service, the first time that service is available to wireless users, Gurry said. They will also be able to access a special MSN home page and retrieve news, weather and other information.
The two companies plan to develop services for business users as well, Gurry said.
The deal also includes a provision for Verizon to promote so-called "smart" phones and pocket PCs in retail stores and elsewhere to help expand the market of potential customers who will access the Internet, Gurry said.
Currently, Verizon Wireless uses Internet services provided by InfoSpace Inc., of Bellevue. Customers currently registered for wireless access can continue with InfoSpace’s service until November, when all Verizon Wireless customers will be steered to the MSN service.
MSN has about 8 million subscribers.
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