MCI, Microsoft to Announce Joint Venture for Internet, Source Says

MCI Communications Corp. and Microsoft Corp. today will announce an alliance to develop a range of services for the Internet, a person familiar with the project said.

The venture will be a broad arrangement for the two companies to work together on a number of new services for the global computer network.

One service will call for MCI, the nation’s No.2 long-distance phone company, to distribute a customized version of the Microsoft Network online service to its consumer and business customers, the source said.

The alliance doesn’t call for an equity investment by either company, the source said.

MCI executives declined to comment. Executives at Microsoft couldn’t immediately be reached for comment.

Daniel Briere, president of TeleChoice Inc., a market research firm in Verona, N.J., said he thinks the venture may call for MCI to provide voice services for businesses over Microsoft’s online service.

Redmond, Wash.-based Microsoft, the world’s biggest personal computer software maker, launched its online service last year. As of last November, it had more than 500,000 subscribers.

MCI, based in Washington, D.C., provides Internet access, software and consulting services.