Yahoo, SBC unroll co-branded DSL service

September 13, 2002 —

Yahoo Inc. and SBC Communications Inc. unveiled their much anticipated DSL (digital subscriber line) service Friday, offering customers a customized browser and bundled premium content and services, in a move that the companies said will drive broadband growth.

The new service, dubbed SBC Yahoo DSL, combines Yahoo's cache of Internet content and services, such as news, e-mail, instant messaging (IM) and Net radio, with the San Antonio, Texas, telecommunication company's 26 million customer locations throughout 13 U.S. states.

Perhaps more interesting, however, are the new features created specifically for the co-branded DSL service, such as the customized browser, which includes a sidebar that allows instant access to a range of personalized content and services such as e-mail, Yahoo Messenger, and the Launchcast radio player. Users can access the features without leaving the current page on which they are browsing.

Subscribers are also offered souped-up broadband services such as a SuperWebcam, which is included in the SBC Yahoo Messenger, and the ability to listen to voice mail messages and deliver information to wireless devices.

Each subscription comes with one primary account and 10 household accounts, and each user can create a customized home page and access personalized e-mail services. Additionally, broadband content, such as movie trailers, music and photos, are brought to the forefront of the service, the companies said.

The DSL service comes in three tiers, priced according to speed. SBC Yahoo DSL Basic offers downstream speeds of 384K bps (bits per second) and upstream speeds of 128K bps for US$42.95 a month. The companies are offering new customers the first six months of Basic service for $29.95 per month, however, and including a free modem and free activation with a one-year contract.

SBC Yahoo DSL Standard Plus3 offers downstream speeds of 384K bps to 1.5M bps, and upstream speeds of up to 128K bps for $49.95 a month. New customers of this service are also being offered a discount rate for the first six months of $29.95 per month.

For customers with a need for super speed, the companies are offering a DSL Deluxe service, with downstream speeds of up to 768K bps to 1.5M bps and upstream speeds of up to 256K bps for $59.95 a month. The first six months of the Deluxe service are being offered at $39.95 a month.

Additionally, higher-speed offerings with static Internet Protocol (IP) addresses are available for heavy Net users and businesses. The companies said that they plan to launch business-specific DSL and dial-up services in 2003.

The DSL service represents a strong move on the part of Yahoo to broaden its business, as it looks to new revenue streams amid a prolonged online advertising slump. The companies have been working to launch the service for some ten months, and unveiled a co-branded dial-up service earlier this year.

Although the Sunnyvale, California, Internet giant has racked up users with its free news, information, e-mail and IM offerings, it hopes that the added services and features, and the ever-pressing need for speed will lure customers to the subscription service.

ITworld.com