AN INNOVATIVE deal has been struck between an M-Cell subsidiary and the world's largest internet service provider, America Online (AOL), allowing two-way short message service (SMS) communication between cellphones and computers.

M-Cell's existing SMS website which allows computer-to-cellphone messaging is one of the world's most popular websites. But until now, it has not been possible to return messages.

The deal has been struck between a new subsidiary of M-Cell, Airborn, and the ICQ (I Seek You) subsidiary of AOL.

ICQ began as a programme to allow internet users to see when other users are online at the same time. The software allows registered members presently 93-million to make contact and converse online.

The deal amalgamates ICQ's computer-based messaging services and MCell's computer-to-cellphone service, but adds the new two-way capacity.

A statement released after the agreement said it was free to send computerto-cellphone messages, but that consumers were subject to phone carrier charges for sending SMS messages.

UBS Warburg telecommunications analyst Vaughan Henkel said the deal was positive for M-Cell, but that the challenge would be to demonstrate how it would result in higher revenue.

There was talk of cellphone companies charging for the receipt of SMS messages, since they were increasingly becoming a burden on overall bandwidth, he said.

This would allow them to generate revenue from SMS, but it could also affect the service, he said.

President of AOL Interactive Properties Donn Davis said the companies were thrilled to have made ICQ mobile. "Now ICQ's global community of 93-million registered users can reach friends, family and colleagues even if they are away from their computer."

With the ability to message to and from computers and cellphones, ICQ adds to its lead in offering the most robust and convenient messaging and communications services," he said.

Ross Macdonald, CEO of Airborn, said the deal made Airborn a world leader in the short messaging sector, one of the hottest areas in the cellular and handheld device industries.