A Waterloo, Ont.-based company that has developed a data compression technology on Thursday signed a deal with one of the biggest Internet service providers (ISPs) in the U.S.

SlipStream Data Inc. announced that Westlake, Calif.-based United Online Inc. will be using SlipStream’s Web Accelerator software, designed to speed-up Internet connections for people who use dial-up modems. The ISP will provide the service to its more than two million subscribers across North America.

“This [technology] will become something that most ISPs offer as a value added service and will, in fact, extend the life of dial-up Internet access,” said Ron Neumann, president of SlipStream.

Internet surfing speeds with dial-up modems will be five times faster with the Web Accelerator software, which compresses, optimizes and streamlines Web content after it leaves the server, Neumann says. In turn, the compression rate is about 40 to one for text and two to one for images