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Yahoo announced on Wednesday a partnership with BT Group to jointly promote a high-speed Internet access product, the U.S. Internet firm's first foray into Europe's highly competitive broadband market.
The new service, called Yahoo! UK Plus, will give BT broadband customers multiple email accounts, digital photo storage, anti-virus software and firewall security.
The service will launch later this quarter, at which time a fee will be announced, the companies said. BT currently charges about 28 pounds ($45.28) a month for its basic consumer broadband and the Yahoo service would likely be priced at a premium.
The alliance will be expanded in the future to include additional broadband access services and price plans, they said. Both companies will pitch in on a multi-million-pound marketing campaign to promote the service.
In January, Mark Opzoomer, Yahoo Europe's managing director, told Reuters that entry into the Internet access market was a priority this year as the firm looks to boost revenues for its loss-making non-U.S. business units.
"There's discussions in the pipeline ongoing in the U.S. and internationally with leading (telecoms) firms on similar deals," Opzoomer told Reuters on Wednesday.
He added he expects to announce similar deals in other European markets, though he declined to offer a time frame.
ACCESS STRATEGY
Broadband Internet access and subscription services are at the heart of the Internet company's turnaround plan in the U.S. as it seeks to lessen its dependence on Internet advertising, a business in decline.
Last year, Yahoo formed a partnership with U.S. telecoms firm SBC Communications Inc to provide broadband service in America. It is looking to develop similar alliances in both the U.S. and Europe, the company said.
In teaming with one of the Web's most popular brands, BT hopes to kick-start its consumer broadband business, seen as a major growth engine for Britain's dominant fixed-line telecoms operator.
In November, BT signed a similar deal with Yahoo's chief rival MSN, Microsoft Corp's Internet portal, to distribute MSN 8, a subscription-based product with enhanced Web browsing features including speedier downloads, surfing functions and spam filters.
Microsoft has a few months' lead on Yahoo in Europe. Late last year, the U.S. software giant announced it intention to seal further alliances with Europe's telecommunications companies and ISPs to sell enhanced broadband packages.
Opzoomer said Yahoo will work with ISP partners to offer broadband access plans tailored to individuals' consumption habits, a subscription concept modeled on cable television rather than the all-you-can-eat model preferred by ISPs.
"This is how a lot of (telecoms firms) are thinking about the market these days," he said.
The new service, called Yahoo! UK Plus, will give BT broadband customers multiple email accounts, digital photo storage, anti-virus software and firewall security.
The service will launch later this quarter, at which time a fee will be announced, the companies said. BT currently charges about 28 pounds ($45.28) a month for its basic consumer broadband and the Yahoo service would likely be priced at a premium.
The alliance will be expanded in the future to include additional broadband access services and price plans, they said. Both companies will pitch in on a multi-million-pound marketing campaign to promote the service.
In January, Mark Opzoomer, Yahoo Europe's managing director, told Reuters that entry into the Internet access market was a priority this year as the firm looks to boost revenues for its loss-making non-U.S. business units.
"There's discussions in the pipeline ongoing in the U.S. and internationally with leading (telecoms) firms on similar deals," Opzoomer told Reuters on Wednesday.
He added he expects to announce similar deals in other European markets, though he declined to offer a time frame.
ACCESS STRATEGY
Broadband Internet access and subscription services are at the heart of the Internet company's turnaround plan in the U.S. as it seeks to lessen its dependence on Internet advertising, a business in decline.
Last year, Yahoo formed a partnership with U.S. telecoms firm SBC Communications Inc to provide broadband service in America. It is looking to develop similar alliances in both the U.S. and Europe, the company said.
In teaming with one of the Web's most popular brands, BT hopes to kick-start its consumer broadband business, seen as a major growth engine for Britain's dominant fixed-line telecoms operator.
In November, BT signed a similar deal with Yahoo's chief rival MSN, Microsoft Corp's Internet portal, to distribute MSN 8, a subscription-based product with enhanced Web browsing features including speedier downloads, surfing functions and spam filters.
Microsoft has a few months' lead on Yahoo in Europe. Late last year, the U.S. software giant announced it intention to seal further alliances with Europe's telecommunications companies and ISPs to sell enhanced broadband packages.
Opzoomer said Yahoo will work with ISP partners to offer broadband access plans tailored to individuals' consumption habits, a subscription concept modeled on cable television rather than the all-you-can-eat model preferred by ISPs.
"This is how a lot of (telecoms firms) are thinking about the market these days," he said.