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EarthLink’s Apple of Apple’s Eye

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In a deal that could help EarthLink Network close in on the top spot among pure Internet service providers, Apple Computer is expected to announce today that it has selected the Pasadena-based company as the exclusive ISP for its new iMac computers.

The computers will ask users if they already have an Internet service provider. If not, the iMacs will help users set up an EarthLink account and waive the normal $25 setup fee.

“You can unpack an iMac and be surfing the Internet within 10 minutes,” said Steve Jobs, Apple’s interim CEO.

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More than 20% of EarthLink’s 710,000 customers are Mac users, including EarthLink founder and Chairman Sky Dayton. “When I connected to the Internet for the first time years ago, I used a Macintosh,” he said.

EarthLink executives said they beat out behemoth America Online for exclusive position on the iMac. AOL declined to comment.

The deal with Cupertino, Calif.-based Apple could help EarthLink catch up to AT&T;’s WorldNet service, which has about 1.1 million Internet access customers. EarthLink won’t say how many iMac users it thinks it can sign up, but analysts expect Apple to sell about 650,000 of the $1,299 iMacs by the end of the year.

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