The initiative combines Microsoft's .Net technology and BT's broadband capabilities. The application effort focuses on mobile computing, .Net and Web services, portals and multimedia home computing.
About 30 projects are under way, including a pending deal with Microsoft acting as the software and digital content partner for BT's Home Computing division, the software vendor said.
"Microsoft is strongly committed to speeding up the adoption of broadband in the [United Kingdom], and we are very excited about BT's broadband strategy and innovative no-frills product, which we believe is a great catalyst for broadband penetration," Microsoft CEO Steve Ballmer said in a statement.
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