Thursday August 5, 6:15 am Eastern Time
Microsoft aiming at Internet access business--WSJ
NEW YORK, Aug 5 (Reuters) - Microsoft Corp. (Nasdaq:MSFT - news) is targeting America Online's hold on the Internet-access business, the Wall Street Journal reported.
The paper said that Microsoft executives are laying plans to hasten the trend toward low-price, or even free, Internet access -- a move that could threaten AOL's position in a business that makes up about two-thirds of its revenues.
``We intend to be aggressive with access,' Brad Chase, vice president of Microsoft's new consumer and commerce group told the paper.
``AOL might think about it as a profit centre. That's not how we think about it,' he said.
The Journal said Microsoft Chairman Bill Gates and President Steve Ballmer have funded the new plan, formulated in the past six months, in large part as a protective measure for Microsoft's core software business.
Microsoft also is considering plans to consolidate the fragmented Internet-service market and broaden its cut-rate offerings.
According to people familiar with the situation, the paper said Microsoft discussed purchasing or partnering with a number of large Internet-service providers, including EarthLink Network and MindSpring Enterprises.
It has also considered joining computer makers such as Compaq Computer and Dell Computer which have launched their own access services, the paper said. |
