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Deltathree expected to sign contract with Microsoft

The telephony services D3 will provide MSN Messenger users with direct calling ability from PCs

Dudi Shani Gabay

deltathree (Nasdaq:DDDC) yesterday announced advanced negotiations with Microsoft (Nasdaq:MSFT).

Deltathree is negotiating to provide phone service to people using Microsoft's MSN Messenger.

The SIP protocol will enable users to dial any number from their PC.

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One clause is holding up the deal, regarding payments from deltathree to Microsoft for the giant to distribute the product among its MSN Messenger users.

The agreement will remain in effect for one year from the time the service becomes available to users MSN Messenger users.

Deltathree believes the service will become available from early 2002, and that an agreement between the two companies will be signed within the next few weeks.