The joint venture sees BT provide internet access, with Yahoo! managing content, and spells the end of BTopenworld as a consumer brand.
A six-month campaign targeting families breaks on September 9,and takes the fight to Freeserve and AOL.
The campaign uses the line 'The way the internet was meant to be' and centres on two fictitious West Coast US characters called Jimmy and Mikey in the net's early days, who could only imagine the possibilities afforded by today's technology.
CHI has developed ten TV ads featuring the characters, as well as press and outdoor executions. TV buying is by The Allmond Partnership, with PHD responsible for other media and planning. The campaign is overseen by BT Yahoo! head of marketing Stephen Brown, previously top marketer at BTopenworld.
BT Yahoo! Broadband is available at £29.99 a month, while the dial-up services launch in November and will cost £15.99. Both are priced the same as BTopenworld.
BT Yahoo! Broadband comes with a range of parental controls, anti-spam and anti-virus software, as well as a facility that automatically blocks pop-up ads. It inherits 1.5 million customers from BTopenworld, of whom just 185,000 are on broadband, considerably behind AOL and Freeserve.
BTopenworld customers will be invited to convert to the BT Yahoo! service by e-mail.
However, BT said it is still considering whether to rebrand its BTopenworld service for businesses, which has 170,000 customers, and make it part of the joint venture.
BT Broadband, a separate access-only service, had signed-up more than a million customers by the end of May.
CHI was appointed to BT's creative roster in the spring, alongside Fallon, as the company sought to "inject fresh ideas" alongside lead agencies Abbott Mead Vickers BBDO and St Luke's.
Fallon has been working on a range of projects for BT's business market.
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