BT goes on the prowl for internet partners

BT is targeting distributors, high street retailers and vendors in a channel recruitment offensive for its portfolio of internet products.

The telecom giant's strategy to woo the channel with its internet products, including BT Click Plus, Talk21 and BT Highway, is gathering momentum.

The hunt for partners has grown to encompass distributors of which CHS Electronics and Ingram Micro are believed to be among the targets.

BT has already established partnerships with Compaq and Dell and more vendor alliances are on the cards. Tiny Computers, Hewlett Packard and IBM are being tipped as likely candidates.

However, the move to the high street has met with mixed results. Christopher Ellis, channel marketing manager at BT, revealed that the telco had failed to secure a deal with Dixons because of a conflict of interest between the companies' free ISP offerings - Dixons Freeserve and BT's Click Plus. Instead, BT has partnered Comet in setting up internet bays in store.

Ellis said: 'By going through the channel, we've increased the number of subscribers by 30 per cent. We've got to change our approach. We're losing market share in the voice market, but BT is in the process of changing from a telecommunications company to a communications company and that encompasses a move to the channel.'

Mike Welch, senior analyst at Inteco, added: 'BT will want a slice of the call revenue. Everyone wants to get in on this business. Being an ISP adds an extra level of service - whether you're Dixons, a PC vendor or BT.