BT allies with Microsoft for broadband onslaught

By Matt Whipp

Posted on 6 Nov 2002 at 15:20

A marriage made in broadband heaven

BT and Microsoft have signed a deal for the former to become a key strategic partner in Europe.

In recent months, the companies began their relationship by inking deals that included offering broadband Internet connections to users of Microsoft's Xbox Live games console.

Now the marriage looks to be fulfilled, with both companies following the technology as a service dream.

In the case of BT, that includes hardware too. BT home computing will be offered to consumers to lease on a monthly basis. It will include a PC, peripherals, software and a broadband Internet connection.

For businesses, the companies plan to use each others' strengths to offer services using Microsoft's .Net Web services technology, along with its desktop software and server know-how and BT's network management, consulting and delivery skills.

Steve Ballmer, chief executive of Microsoft, said: 'Microsoft is strongly committed to speeding up the adoption of broadband in the UK, and we are very excited about BT's broadband strategy and innovative no-frills product, which we believe is a great catalyst for broadband penetration.'

The alliance will target five areas - multimedia home computing, corporate productivity and flexibility, mobile computing, web services and portal - with around 30 separate projects.

Further details of these projects were not forthcoming, as were any financial details.