Microsoft Corp. said it plans to end a US$400 rebate offer that it extends to new customers who sign up for its MSN (Microsoft Network) Internet access service.

Currently, users that agree to sign up with MSN for three years receive a US$400 rebate good for purchases at retailers affiliated with the software giant. Microsoft will end this plan, replacing it with one that offers one free year of MSN Internet service to users who purchase a new PC, a Microsoft spokesman said.

Microsoft will also offer deals to users willing to switch to its premium Internet service. Subscribers who switch to the premium service can receive a $200 rebate for a two-year sign up or a $75 rebate for a nine-month sign up, the spokesman said, in an email response to questions.

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