AT&T rejects Netscape

AT&T Corp has picked Microsoft Corp's browsing software as the product of choice for its Internet-access service, rejecting Netscape Communications Corp.

AT&T and Microsoft first teamed up in July, when the long-distance phone company agreed to offer Microsoft's browser to users of its Internet service. In return, AT&T's WorldNet is included as part of Microsoft's Windows 95 operating system.

The new agreement extends Microsoft's reach by making its Internet Explorer the main method by which AT&T's 425,000 WorldNet customers peruse the global computer network.