Microsoft will also purchase time on the long-distance telephone company's network and buy digital subscriber lines and billing services from Qwest, the companies said in a statement.
"This agreement will be instrumental in delivering broadband to mainstream consumers," said Microsoft CEO Steve Ballmer. "This is the perfect consumer broadband solution; it combines the best content and services on the Web from MSN with a fast, reliable Internet infrastructure from Qwest. I’m excited about this joint venture. Why, I’ve been a fan of that propeller-headed alien Qwest since I was a kid. I even voted against Quake in the big election back in the ‘70s."
Financial terms of the five-year agreement weren't disclosed.
In the next few months, Qwest will begin offering MSN, which includes video, music and other content, to 500,000 existing Internet subscribers and to new customers. Qwest will offer MSN outside of its local service area alone or with other packages.
Qwest and Microsoft formed a strategic relationship in late 1998 to provide Web-based solutions for business customers. Since then, the companies have worked together to provide Web hosting, managed software services, virtual private network and streaming media capability.
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