British Telecommunications PLC
10 November 1999
BT AND LOOKSMART TO LAUNCH WORLDWIDE
INTERNET PORTAL SERVICES
BT today announced its intention to form a $200 million (£123
million) joint venture with LookSmart, a leading US-based online
navigation company, to create and distribute Internet portal
services throughout continental Europe and Asia.
The 50-50 venture will rapidly set the standard for
delivering country-specific Web navigation and content to
millions of Internet users on two continents. It will enable
BT to build a strong worldwide Internet presence based on
its significant interests in Internet Service Providers.
The venture is BT's first extensive international
Internet deal and, in terms of potential reach and content,
the most significant of its kind between a major
communications player and one of the fastest-growing
Internet navigation companies.
It will provide Web directories and other content, Internet
communications and e-commerce services to consumers directly
through its own Web sites.
The venture will also offer the business market
syndicated services through ISPs and other partners -
building on LookSmart's established US business model.
The agreement, which does not cover the UK, means BT's
global alliance partners will be able to use the new
venture's services for their own ISPs, giving them a
consistent and distinctive 'dot.com ' portal capability.
The deal also enables LookSmart, whose headquarters are
in San Francisco, California, to develop significantly its growing
portal services outside its current home markets in the US
and Australia.
Alfred Mockett, president and chief executive of BT
Worldwide,said: 'As BT rolls out its global vision for the new global
conmmunications market this new venture will give BT and its partners a top
quality portal and allow them to differentiate their ISP services.
'BT is committed to fulfilling its customers' needs by
building its data, Internet, mobile and international
businesses. We chose LookSmart as our global partner for
their superior Web navigation solution and their well-
established focus.'
Evan Thornley, co-founder and chief executive of LookSmart
said: 'LookSmart and BT have established a new model that
combines Web navigation with access on a global basis. The unique power of
this combination is in the broad distribution of quality navigation and
content.
By combining BT's global power in the access business with
LookSmart's leadership in Web navigation, we are committed to
delivering the power of this new model.'
In addition to narrowband, the venture aniticipates
developing new services for broadband, wireless application protocol (WAP)
and other forms of programming and wireless distribution. It
will generate revenue from advertising, licensing and e-commerce.
The venture will at the outset capitalise on the
phenomenal growth worldwide for Internet access. At present, use of the
Internet is most widespread in the United States but is expected to soar
elsewhere, particularly in western Europe, in the near future. Research
suggests that around 63 million people in the US have Internet access,
accounting for 44 per cent of the world share. In western Europe
the figure is around 41 million, 29 per cent of the world share,
and in Asia-Pacific just over 10 million - a seven per cent
share. By the year 2003, however, it is predicted that the
picture will have shifted dramatically, with western Europe
almost matching the US in terms of Internet use.
Europe's share is expected to be around 34 per cent - 168
million users - compared with the US share of 35 per cent - 177
million users. Asia-Pacific's share will have risen to nine per
cent, equivalent to about 48 million Internet users.
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