Microsoft steps up MSN's fight to rule the Net

In this story: MSN takes on AOL RELATED STORIES, SITES

LONDON, England (Reuters) -- Microsoft beefed up its MSN Internet portals on Wednesday and said it was going on the offensive to try and make MSN the world's dominant online brand.

This is just the latest round in a fight pitting it against U.S. rivals Yahoo! and America Online Inc. globally, and against local leaders in specific markets, like France's Wanadoo or T-Online in Germany.

"The objective of the campaign is to build MSN into a global consumer brand with the recognition, prestige and value of Microsoft's core brands of Windows and Office," the U.S. software company said in a statement released in London.

MSN claims already to be the top worldwide destination for online consumers, but Microsoft said it was spending $150 million in a global advertising campaign, and enhancing searching and messaging services, to make it even more popular.

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"(The campaign) is centered on the theme of MSN as a home, a place where consumers feel comfortable and in control," it said.

MSN Europe marketing director Sharon Baylay said the Net still frustrated people throughout the world.

"Where people were once in awe of its power and potential," she said, "in reality many have found it confusing and difficult."

Microsoft said from Wednesday its MSN Web portals would have a better search engine featuring "local human intelligence" -- i.e. staff making it more relevant in the 33 markets it serves.

In a broadside to AOL, the U.S. Internet leader whose instant "buddy" messaging service attracts millions, Microsoft said it was also revamping MSN communication services.

Users of MSN Hotmail -- the world's number one Web-based e-mail service with 74 million users -- can now see if a friend is online and start an instant message session from Hotmail.

As part of the revamp Microsoft was also planning on Wednesday to highlight MSN Explorer, an AOL-like user interface aimed at U.S. users that sits on a PC and through which the Internet is channelled.

"These services are incredibly compelling," Baylay told Reuters. Explorer will initially be U.S.-focused.

AOL, whose users have to download proprietary software that has its own look, itself unveiled an upgrade on Wednesday that emphasizes high-speed data and non-PC devices, and said it had also improved core features such as e-mail and instant messaging.

AOL, which dominates the U.S. Internet access market, said it did not worry about what rivals like Microsoft were doing.

The revamped MSN sites will also let users tailor their own personal home page more easily than before -- an area in which Yahoo! has been highly successful.

Personalization will become increasingly important as use grows of the Net on mobile phones, where information must be more carefully filtered due to limited screen space.

Mobile network operators, like Britain's Vodafone, also aim to become major portals for the wireless Internet.

Microsoft says 210 million people a month visit MSN sites around the world, ranking number one in seven of the 12 main markets for which statistics are available.

Copyright 2000 Reuters. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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