Verizon teams up with Yahoo in Internet content deal

SAN JOSE, Calif. - Subscribers to Verizon Communications Inc.'s high-speed Internet services will be able to access customized and premium content from Web giant Yahoo Inc. under a multiyear agreement that combines the companies' offerings into a single brand.

The deal, whose terms were not disclosed, is the latest example of an Internet provider teaming up with a content company to offer more than just a fast connection. For their part, content providers receive greater exposure and a slice of monthly per-subscriber fees.

Terms of the deal announced Monday were not disclosed.

Verizon is the second major U.S. phone company to partner with Yahoo. Since 2002, Yahoo and SBC Communications Inc. have been bundling their offerings. Yahoo also has agreements with British Telecom and Rogers Communications, a Canadian cable company.

New York-based Verizon also has a deal with Microsoft Corp.'s MSN to provide content to its customers. Starting this summer, Yahoo will become the preferred partner, said Bobbi Henson, a Verizon spokeswoman.

"Yahoo will be presented to the customer first, but they do have the MSN option as well," she said. Existing customers can switch to the Yahoo service or keep the existing portal, she added.

Verizon-Yahoo broadband will offer premium services such as greater e-mail storage, video and radio as well as access to a co-branded home page. Subscribers will use the same username and password to log in to all services.

"It's all bundled with the DSL price, much like SBC, so there's no additional cost to the end user," said Steve Boom, senior vice president of broadband access and bundled services at Sunnyvale, Calif.-based Yahoo.

Verizon's broadband offerings start at $29.95 per month if users sign up for a year. In October, it reported a total 3 million digital subscriber lines, which transports data over regular phone lines. It's also rolling out a service that uses fast fiber optic cable instead of copper wires.

The combined service will be available in Verizon's territory of 29 states and the District of Columbia.