Microsoft Continues DSL Investments

Microsoft Corp. Tuesday made another bet on Digital Subscriber Line by taking a $15 million stake in DSL Internet provider

Headquartered in New Haven, Conn., targets cities nationwide with populations of less than 900,000. will use the Microsoft funds to expand its network infrastructure.

As part of the deal, will provide its small and medium-sized business customers with a co-branded version of Microsoft’s MSN portal. The portal will contain links to content and other resources specifically targeting small and medium-sized businesses.

“Broadband services are increasingly vital to small and medium-sized businesses as they compete in today’s highly demanding marketplace. By providing its customers with high-speed access to MSN services, is delivering the tools that businesses need to compete and prosper — efficient, cost-effective information and communications services,” said Thomas Koll, vice president of Microsoft’s network solutions group.

This latest investment comes on the heels of Microsoft’s $30 million stake in Rhythms NetConnections Inc., announced in mid-March. That deal was Microsoft’s first foray into DSL, although the company has high-speed ties with Comcast, Road Runner and Qwest Communications.

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