AOL's offer consists of fast internet service at £34.99, which is £5 more expensive than BT Openworld and Freeserve.
BT's access-only broadband service is called BT Broadband and provides just internet access for £27 a month.
BT then provides a gateway to a raft of content partners in the areas of news and entertainment, search and other services such as online gaming.
It allows customers to pick and mix their staple internet service.
This contrasts with the BT Openworld service which provides users with all-in-one access to a home page with links to BT-branded content.
"We're banking on the principle that separating access from content will take off. We believe consumers would rather get information from specialist content providers, not their ISP, said Angus Porter, managing director, consumer for BT Retail.
BT Broadband partners include the BBC, lastminute.com, Google, MSN and Dotmusic. A press campaign targeting businesses aims to take the number of content partners to 200.
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