Yahoo! is marketing the new service as a personalised internet experience, with features such as parental controls, junk email filters, digital photo storage and anti-virus software.
The service will be available to BT Broadband customers, and follows in the footsteps of Yahoo!'s DSL offering in the US, where it has a similar agreement with SBC Communications.
BT and Yahoo! say that they are committed to a multimillion pound, cross-platform marketing campaign to promote the offering, including both off- and on-line advertising. There will be further premium services offered in the near future.
Terry Semel, chairman and CEO of Yahoo!, said: "The launch of our services with BT is a clear demonstration of Yahoo!'s unique ability to tap into a broad set of premium services and content to create the most compelling experiences for customers."
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