Yahoo! is launching its first European broadband offering after joining forces with Britain’s BT Group.

The portal giant will offer BT Broadband subscribers a package of content and services branded Yahoo UK Plus, mirroring a partnership in the US with telecoms firm SBC Communications.

The deal is the first stage of a new drive into markets beyond US shores. Yahoo! is keen to reduce its dependence on the ailing online ad market, but to date has done so only in America.

“Our international business is still a one-trick pony – it's an advertising business,” admitted the portal’s chairman/chief executive Terry Semel. “It's probably a year or two behind the US.”

Yahoo UK Plus will offer broadband Britons such services as email accounts, instant messaging, parental controls, a firewall, virus protection, a spam email filter and storage for digital photographs.

Data sourced from: Financial Times; additional content by WARC staff