IBM, AT&T; Join in Plan to Set Up Companies on Web

IBM Corp. and AT&T; Corp. are pooling their considerable market heft to offer small and mid-size businesses a combined package of products and services to help them set up Web sites for handling transactions, sales and communications.

The unusual alliance between the world’s largest computer company and the No. 1 U.S. telecommunications provider underscores the huge potential market in business customers that seek to cut costs and boost sales by doing business over the Internet. While large corporations are far along in developing Internet presences, many smaller companies are just getting started.

IBM plans to sell computers and software for running the Web sites, while AT&T; will provide Internet connections to customers.

The price for the package starts at $35,000.

The companies would not comment ahead of an announcement Wednesday on the arrangement.

The offering will be jointly sold by IBM and AT&T.; While IBM has a huge sales force, targeting thousands of small and mid-sized businesses requires the far-flung resources of third-party distributors.

IBM shares rose $2.13 to $119.88 and AT&T; jumped $2 to $43.75, both on the New York Stock Exchange.