Yahoo, MCI to Start Online Service

Santa Clara-based Yahoo Inc. and Arlington, Va.-based MCI Communications Corp. said they will start an online service targeting users of sub-$1,000 personal computers. The service would be available in March. The companies plan to market the service on Yahoo’s popular Internet site from which users can download the software. With the new service, Yahoo, the most popular Internet directory, hopes to challenge Dulles, Va.-based America Online Inc., which now has more than 10 million subscribers. For MCI, the service would be an opportunity to expand its business as an Internet service provider. A study by International Data Corp. predicts that the number of Internet users worldwide will grow this year to 100 million from 50 million. In Nasdaq trading, Yahoo shares rose 63 cents to close at $62.50 and MCI shares rose 25 cents to $42.31.