Microsoft and Compaq, the world's biggest software and personal computer groups respectively, are to invest a total of $425 million (£303 million) in a new high-speed Internet venture in the US, using Time Warner's Road Runner online cable service.
The investment will leave the two groups each with a 10 per cent interest. Time Warner will hold 37 per cent, while Media One, the broadband services group, formerly part of US West, will have 34 per cent.
The Road Runner service, which has been operating for 18 months, has 90,000 customers and access to 27 million homes. It offers fast Internet cable access and a range of online services such as news and sport.
Microsoft said it would use its range of Internet and application software in the new venture. Compaq, which last week unveiled a new range of PCs with easy Internet access, is to develop similar cable-ready versions.
Mr Eckhard Pfeiffer, Compaq president and chief executive said: "This new venture enables us to take advantage of the converging technologies of the Internet, computers and broadband services to deliver vastly improved services to consumers."
