BT go free

So BT are (according to The Times) threatening the music industry with a free service. This seems to be similar to the MAD (mutually assured destruction theory of the Cold War). Is that all they have in the locker ? The selection of music will be inferior to the illegal sites so probably won't even merit a registration. More sensible would be to deal with the piracy problem directly; giving it away is not a business model (unless you are in a dominant Market position and see all the Governments email / Internet traffic ) ; well there we are then.