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?
