Yahoo and BT Group are to jointly promote a high-speed internet access product.
In what will be the US internet firm's first move into Europe's broadband market, the Yahoo! UK Plus service will give BT broadband customers multiple email accounts, digital photo storage, antivirus software and firewall security.
According to Reuters, the service will launch later this year at which time a price will be announced.
The alliance will be expanded in the future to include additional broadband access services and price plans.
Both companies will pitch in on a multimillion pound marketing campaign to promote the service.
A Yahoo spokesman said that the company will work with other internet service providers (ISPs) to offer broadband access tailored to individuals' consumption habits.
This subscription concept is similar to cable TV, rather than the 'all-you-can-eat' model preferred by ISPs.
BT signed a similar deal with MSN late last year to distribute MSN 8.
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