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Verizon and Yahoo! forge broadband alliance

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Verizon Communications Inc - the US's largest telecoms company - is hooking up with Yahoo! to promote a co-branded broadband service.

Both companies reckon the pairing will help increase demand for broadband and attract cable punters to DSL. Verizon and Yahoo! intend to promote the service with an "aggressive" marketing campaign via the Yahoo! network and through Verizon's own ad channels.

As part of the deal, Yahoo! will receive monthly fees based on subscriber numbers while Verizon will earn a slice of revenues from premium services subscriptions, searches and advertising.

For consumers, the merger combines Verizon's high-speed access with Yahoo!'s content and services, such as email, storage and broadband content.

Said Verizon bigwig Bob Ingalls: "Broadband users looking for more value and a superior online experience will come to Verizon because they know they can count on us to deliver innovative services like the new Verizon Yahoo! product."

This isn't the first time that an access company and content provider have joined forces to boost their services. In 2002, US telecoms giant SBC hooked up with Yahoo! to offer bundled services. While in the UK, BT cuddled up with Yahoo! in 2003 to offer a jointly-branded service. ®

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