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Yahoo! Inc and SBC Communications have hopped into bed together to launch a co-branded dial-up Internet service.

Called SBC Yahoo! Dial, the US-based service costs $21.95 a month for unlimited dial-up access.

For SBC, its rebranded service will be flogged to millions of US Net users in a move that it hopes will help grow its user base.

For Yahoo!, it will get to see a regular slice of subscriptions at a time when it is trying to find other revenue streams other than advertising.

Almost two million SBC existing dial-up customers will be transferred to the new service over the coming weeks although new users can sign up to the service now.

In a statement Jim Brock, senior VP at Yahoo! Inc said: "The new SBC Yahoo! Dial service offers an enhanced online experience and new choice for consumers - particularly for the hundreds of millions of loyal Yahoo! users who are seeking an alternative to current ISPs

"SBC Yahoo! Dial is a compelling consumer offering that combines dial access, a customised portal and browser, and a suite of premium services and content. We believe the service will be highly competitive to the other ISPs on the market today," he said.

Later this summer, SBC and Yahoo! expect to launch a co-branded broadband service in SBC's 13-state region.

Separately, PC maker Gateway and ISP EarthLink have teamed up to flog broadband over Time Warner Cable.

Gateway will use its 56 US stores to promote the EarthLink High Speed Internet Service, which costs $41.95 a month. ®

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