The agreement also calls for the companies to provide co-branded dial-up service nationwide.
Pairing the strengths of the No. 1 global Internet destination with the nation’s leading DSL Internet provider and one of the largest Internet service providers, the two companies will offer a co-branded, premium DSL Internet and dial-up service. Expected to launch beginning in mid 2002, this service, the first of its kind, will include a suite of Yahoo! and SBC customized products and services, including many optimized for broadband.
Teaming with Yahoo! is another strategic milestone that strengthens SBC’s position as a world-class voice, data and Internet services provider, said Edward E. Whitacre, Jr., chairman and CEO, SBC Communications. This alliance gives both companies a competitive edge in delivering the best possible online experience for our customers and it strengthens both of our leadership positions in the broadband and Internet services market.
This alliance enables Yahoo! and SBC to create deeper relationships with millions of broadband and dial-up subscribers, and provides the 30 million Yahoo! users in SBC’s region with a unique, integrated access and premium service offering on a subscription basis, said Terry Semel, chairman and CEO, Yahoo! Inc. As access relationships become a more important part of our strategy, we could not ask for a more solid partner than SBC.
Together, Yahoo! and SBC will promote the co-branded service in extensive online and offline marketing programs to attract new customers as well as transition SBC’s existing customers to the co-branded service. SBC will include the co-branded service in its offline and online advertising; Yahoo! will promote the co-branded service on the Yahoo! network, reaching many of the more than 23 million DSL-eligible homes and businesses within SBC’s 13-state region.
For Yahoo!, the agreement provides monthly per-subscriber payments from SBC; promotion through SBC’s powerful sales channels and customer service teams, which reach millions of consumers every day; and the ability to offer bundled premium services by leveraging SBC’s communications and billing infrastructure. An example of one premium service the companies plan to offer is Unified Messaging, a powerful and convenient tool that enables users to check, store, manage and reply to voicemail, faxes and e-mail received from multiple sources through an interface on their home/start page. Key terms for SBC include a share of Yahoo! non-subscriber revenue on advertising, e-commerce and premium features and services on the portal, and Yahoo!’s commitment to DSL as its preferred broadband solution.
The winner of the broadband war will be the company that delivers the best broadband-powered content, communication services and features to its customers, said James S. Kahan, senior executive vice president-corporate development, SBC Communications. Together, we’ll provide SBC’s Internet customers with superior information and communications services.
Yahoo! believes the strength of this alliance will rapidly accelerate the growth of DSL in the broadband market, and we have partnered with the leading provider in the country, said Jim Brock, senior vice president, major initiatives, Yahoo! Inc. As more and more consumers transition to broadband, we believe this alliance will position us to capture market share from our competitors.
