Microsoft Satellite Partner

Microsoft Corp. agreed to invest $50 million in a joint venture with Gilat Satellite Networks Ltd. to provide high-speed Internet access by satellite to remote areas. The Gilat-To-Home venture with the Israeli satellite-equipment maker will be based in McLean, Va. The venture will be owned 26% by Microsoft and 35% by Gilat, which is seeking investors for the remaining 39%. Gilat, which expects to begin selling access to the public in the third quarter, has projected 1 million U.S. subscribers by 2003. Gilat shares rose $9.25 to $149.25 on Nasdaq. Microsoft said Gilat-To-Home will give customers access to Microsoft’s MSN network of Web sites, which have about 2 million subscribers. The satellite Internet service is expected to be 10 times faster than telephone modem speeds, the companies said.