Microsoft Corp. (www.microsoft.com) and Qwest Communications International Inc. (www.qwest.com) are joining forces to make MSN Internet access, content and services, and Qwest’s dial-up or DSL service available to more than 12 million households in the telco’s 14-state territory. The deal could potentially bring in $1.3 billion to $1.5 billion in additional revenues to Qwest by boosting subscribership to Qwest.net over the next five years.
Under the agreement, Qwest will exclusively market MSN Internet access and services to new and existing customers. In addition, Qwest will spend $100 million on advertising on MSN to market its Internet access services. In return, MSN will purchase broadband capacity, DSL, dial ports and billing and collections services to support the delivery of MSN content and services to customers.
Beginning this summer, the 500,000 existing Qwest.net subscribers and new customers in Qwest’s telco territory will begin receiving the MSN Internet access. Outside of Qwest’s local service area, Qwest will market MS Internet access alone or as part of a package of Qwest’s products and services.
