BT Signs Broadband Pact with Microsoft

Britain's dominant fixed-line telecoms operator BT Group Plc. said Wednesday it had signed a formal strategic alliance with U.S. software giant Microsoft to develop more high-speed Internet services.

The alliance puts BT on an equal footing with Microsoft's other telecoms partners around the world, South Korea's KT Corp. in Asia and Verizon in the United States.

Broadband access is a crucial engine of growth for BT as it seeks to branch out from its core service of connecting voice calls to British homes. The former state telecoms monopoly slashed wholesale broadband prices earlier this year to kick- start the industry in a country which has lagged much of the developed world in hooking up to the high-speed services.

Although no financial details were released, investors welcomed BT's tie-up with such a big-hitter in the computing world.

The alliance follows two deals BT struck with Microsoft in September, including plans for services that work across varied Web platforms and a partnership to offer broadband Internet connections to users of Microsoft's Xbox (news - web sites) Live games console.

"Both our organizations will be working hard to ensure we spot the right opportunities and quickly bring to market great products and services that match the needs of our customers," Microsoft Chief Executive Steve Ballmer said in a statement.

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