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Sunnyvale, California (pte038/18.01.2005/15:15) - Yahoo is set to provide an Internet portal service for broadband customers of the US Internet provider Verizon. Both companies already have partners - Yahoo has an agreement with SBC Communications, while Verizon has a similar contract with Microsoft's MSN. As the Wall Street Journal (WSJ) reports, the Verizon agreement will help further Yahoo's efforts to generate additional non-advertising revenue. The new service will be offered to Verizon high-speed Internet subscribers at no extra charge.
The deal will come as a blow to MSN, as it will no longer be the sole Internet portal with ready access to Verizon's broadband subscribers. All current subscribers to Verizon will have the option to switch to the new Verizon Yahoo portal. According to Yahoo, all new Verizon broadband customers will be signed up for its portal unless they select otherwise. "We really want to be able to offer customers a variety," said Bobbi Henson, a Verizon spokeswoman. "People have their preferences as to what kind of portal they want to use to access the web." Verizon will pay Yahoo a per-subscriber monthly fee. The provider currently has 3.3 million subscribers.
A similar deal has already paid off for Verizon's rival SBC. SBC officials say that the Yahoo brand name appeals to some subscribers that wouldn't otherwise be as interested in the SBC brand name. At present, the company has more than five million high-speed Internet subscribers. According to the WSJ, the move is unlikely to have any strong impact on SBC's relationship with Yahoo because SBC and Verizon don't yet compete much for residential customers, although that could change as the companies expand beyond their traditional regions.
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