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Google's Latest Partnership Induces Pain

While many of the leading telcos globally have aligned themselves closely with Yahoo! -- which is currently embarking on a major corporate turn-around restructuring -- the pay-TV market leader in Europe has selected a different strategic partner.

Informitv reports that British satellite broadcaster and broadband service provider BSkyB has announced plans to collaborate with Google to become the first partner in the world to deploy a suite of search, advertising, communications and video services from the internet information company.

Sky will launch a multi-platform user generated video portal powered by syndicated video tools from Google that will allow users to edit, upload and share their own video material, including the ability to upload and download from a mobile phone.

"These agreements will bring Sky customers a valuable set of services from the world's leading search company, including cutting edge tools for video sharing and communications," said Sky chief executive James Murdoch.

"In a short time, Sky has emerged as an effective challenger by offering high-quality broadband that offers greater value than traditional cable and telcos," he said, commenting on the Sky Broadband service, launched following the acquisition of Easynet. "Sky is on track to build a large and successful broadband business and is increasingly well positioned to participate in the rapid growth of online search and advertising."

This latest new development is sure to send a shiver down the already tender spines of the telco executive teams in Europe. In addition to video services, Google will make available a customised version of its email service. This will offer users a sky.com email address. Google will also provide search tools and targeted search advertising across the Sky portfolio of web sites.

"Today's alliance with Sky brings together two of the most innovative media and technology companies for the benefit of users," said Eric Schmidt, the chairman and chief executive of Google. "We're delighted to team up with Sky in one of the world's most dynamic markets and we look forward to working together in the years to come."

My Diagnosis: Google + YouTube + BSkyB + MySpace = Telco Pain

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