AOL partnership pushes Net entertainment service

NEWS AOL is spending $1.5bn on a partnership with Hughes Electronics to develop digital entertainment and Internet services that will be delivered via satellite. The two companies will promote satellite Internet services as an alternative to cable and DSL access. They are already collaborating on a set-top box scheme that combines Hughes' digital television offering with AOL's interactive television. AOL is also considering offering free Internet access in the UK, to compete with Dixons Freeserve. The company said it will announce a new Internet access offering in the next few weeks.