Neil McIntosh 

BT teams up with Yahoo!

Interesting news today that BT is partnering with Yahoo! to sell broadband services, dropping its Openworld brand. Essentially, BT goes back to doing what telcos do best - providing pipes - while Yahoo! provides the content. BT's long been edging this way, and it's a sensible move for them. It remains to be seen, IMHO, if people really want premium content bundled with their internet access (just ask AOL) - there are lots of "free" benefits to broadband outside these packages.
  
  


Interesting news today that BT is partnering with Yahoo! to sell broadband services, dropping its Openworld brand. Essentially, BT goes back to doing what telcos do best - providing pipes - while Yahoo! provides the content. BT's long been edging this way, and it's a sensible move for them. It remains to be seen, IMHO, if people really want premium content bundled with their internet access (just ask AOL) - there are lots of "free" benefits to broadband outside these packages.

It also creates a conundrum for BT's telco rivals - do they attempt to follow BT/Yahoo down the pipes and content route, or do they attempt to compete only on the pipes? The former is an expensive, tricky option; the latter is OK if you own your own networks, but price competition is sure to become increasingly tough there. Has there ever been a good time to be an internet service provider?

 

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