BT: flexibility key to broadband boost

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BT Group is to incorporate a range of new products and services to boost the use of broadband in the UK. The group is convinced that "Four innovations - Flexible Bandwidth, BT Rich Media, BT Communicator and BT Remote Management System - will cement BT's key position as the broadband battle moves on from access to content, applications and managed services."

Amongst this services the company is in talks with leading media groups about a video-on-demand internet service. Pierre Danon, the chief executive of BT Retail, said the company was also in discussions with the US media giant Time Warner, BBC, ITV and BSkyB about supplying programmes for the new platform, to be called BT Rich Media.

Danon also unveiled a new internet-based telephone service with Yahoo! which will allow BT customers to run their home communications from their PC and make phone or video calls over a high-speed internet connection.

Last week BT slashed the cost of its basic broadband service from E37.8 (£27) a month to E28 (£19.99) in response to a E22 (£15.99) service launched by rival Tiscali. At the heart of BT's strategy is the idea of offering flexible bandwidth. Flexible bandwidth will allow customers to temporarily and instantly boost this download capacity and speed to allow them to buy DVD quality films or games online.