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. Last Updated: 07/27/2016


?In an effort to boost its lagging position in the emerging Internet software market, Microsoft Corp. announced last week it is entering into a strategic alliance with MCI, the nation's second-largest long distance phone company.

The deal is one of a series of alliances Microsoft has established as it moves forward with a plan announced last month to aggressively take on the Internet market.

Under its deal with MCI, Microsoft will help market MCI Communications Corp. services in exchange for an MCI commitment to use Microsoft's Internet software.

MCI will scale back its previous efforts to launch an Internet service in cooperation with News Corp., in which it made a $2 billion equity investment.

MCI and News Corp. are expected to work together in new media to combine MCI's telecommunications expertise