SBC Communications Inc. (www.sbc.com) inked a co-marketing agreement with Yahoo! Inc. (www.yahoo.com) to provide DSL and dial-up Internet services within the telco’s 13-state territory. Beginning in mid-2002, marketing of the co-branded service will be done in both online and offline programs to attract new customers, as well as transition SBC’s existing customers to the new offering.
The companies will also include for their consumer customers a suite of customized products and services, many of which are optimized for broadband connections. SBC and Yahoo! also plan to offer services such as unified messaging, which will allow customers to check, store, manage and reply to voice mail, faxes and e-mail received from multiple sources through a home page.
“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,” Terry Semel, chairman and CEO of Yahoo!, said in a statement. “As access relationships become a more important part of our strategy, we could not ask for a more solid partner than SBC.”
Key terms of the agreement include SBC getting a share of Yahoo!’s non-subscriber revenue on advertising, e-commerce, as well as premium features and services on the portal. Yahoo! is also committing to make DSL its preferred broadband solution. For Yahoo!, the agreement provides monthly per-subscriber payments from SBC, as well as promotion through SBC’s various sales channels. Yahoo! will also be able to offer bundled premium services by using SBC’s communications and billing infrastructure.
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