In a move to deliver content and services to devices beyond the PC, America Online Inc. has expanded its partnership with AT&T Wireless Group Inc. The two companies will develop a new co-branded mobile service that will attempt to emulate the AOL desktop experience on a handheld device, offering AOL’s renowned instant messaging, electronic mail, and Internet content.

The deal builds on their existing relationship, which began last year with the launch of AOL mobile service on AT&T digital PocketNet telephones.

The combination of AT&T's forthcoming launch of 2.5 G network, GSM/GPRS, next year with AOL's media savvy expertise and subscriber base of 30 million looks promising. However, the success of the service appears to hinge on AT&T’s ability to deliver rich media content and streaming services to a predominantly PC-user base.

"This innovative agreement promises to deliver AOL members the most comprehensive mobile experience in the marketplace," said Barry Schuler, chairman and CEO of American Online. He added by working "with AT&T wireless, we will continue to extend our ‘AOL Anywhere Strategy’ by taking our mobile services to the next level and giving our members the AOL experience they know and trust across one of the most respected names in wireless. "

• Develop a co-branded service with features such as e-mail, instant messaging and other content

• Offer customers a co-branded and custom design handset, to be available for purchase in the first half of 2002

• Expand existing marketing relationship, which will see AT&T wireless products and services promoted through the AOL Time Warner brand, both through the Internet and off-line channels

AOL has a similar deal with Sprint PCS Group and also offers its instant messaging service over VoiceStream Wireless Corp. handsets.