France Telecom and IBM have teamed up to offer a lowcost way to connect to the Internet using a new generation of phones instead of personal computers. In a statement released in Paris, the two companies said they had formed a partnership to spur development of new types of low-cost Internet access devices and that they plan to market the technology worldwide, especially in countries where PC costs have been a barrier to widespread Internet adoption.

Initially, the partners said, they plan to develop the new network software system for use in France, building on the country's established Minitel network, an online and electronic commerce network developed in the early 1980s that was a predecessor to the development of the commercial Internet. The system will provide Internet access to consumers and businesses via so-called screen phones, which combine voice and text communications, and other devices, in a bid to make France one of the leading markets for electronic commerce services.