AOL ousts Microsoft from Compaq desktops

NEWS AOL has won a significant victory in the battle to win the hearts and minds of internet users, striking a blow to Microsoft's .NET strategy. New Compaq desktops will ship with an AOL icon on their desktops, making it much easier for new computer users to connect to the internet using AOL than Microsoft's MSN. Compaq is understood to be receiving a payment from AOL for the privilege. The move follows Microsoft's decision to open access to other ISPs in their new operating system, Windows XP. That decision was made following judgments against them in its on-going anti-trust case. Presence on the desktops of new PCs is seen as a very important way of marketing internet access services, and played a key part in the earlier stages of the anti-trust trials. Many PC manufacturers alleged they were bullied into including the IE icon on their desktops. Today's move is significant, as the link between operating systems and internet services is central to Microsoft's vision for the future of computing, .NET. AOL's user base is nearly five times larger than Microsoft's, and the company offers a rival vision to the .NET initiative based on its own portals and messaging software, and the content offering of its parent company, AOL Time Warner. In the UK, however, the move will have less impact as the leading ISP is Freeserve. Freeserve built its business on the basis of a partnership with Dixons, which owned Freeserve prior to a sale to French ISP Wanadoo last year.