Microsoft and BT team on consumer broadband

Reuters | at | by Mike

Microsoft Corp and BT Group said on Monday they will jointly promote high-speed Internet access built around Microsoft's new MSN 8 Web browser. The deal enlists the software giant's first major European distributor for MSN 8, a subscription-based product with enhanced Web browsing features. Microsoft is hoping that MSN 8 will bring its loss-making Internet business unit into the black.

In teaming with one of the Web's most popular brands, BT hopes to kickstart its broadband business, seen as a major growth engine for Britain's dominant fixed-line telecoms operator. Judy Gibbons, vice president for MSN in Europe, the Middle East and Africa, said the companies will spend $4 million to promote MSN 8-enhanced broadband services. Ads will target the early adopter crowd, a group traditionally willing to pay up for high-end features.