MCI and Yahoo enter new Internet agreement

In a bid to challenge America Online's dominance of the US residential Internet market, MCI Communications is joining forces …

In a bid to challenge America Online's dominance of the US residential Internet market, MCI Communications is joining forces with the nation's most popular World Wide Web searching service.

MCI and the Internet directory company Yahoo! have announced that they have entered an agreement to market a new Internet service. The service, to be called Yahoo! Online Powered by MCI Internet, is expected to be available by the end of March.

The service will be pitched to a huge market - Net newcomers.

Mr Jeff Mallett, Yahoo's chief operating officer, said, "Fifty million new users are expected to come to the Web in 1998. We feel what we're putting together jointly is the easiest setup for getting connected. The new user coming in here will be able to get the best, easiest service for getting access on the Web, period."

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Currently, one can get access to Yahoo! only through another Internet service provider, or ISP, such as America Online Inc. The deal between Yahoo! and MCI creates a new ISP that will give customers immediate access to Yahoo's Internet directory and to its own news, travel and financial services.