Verizon, which had announced the, unveiled the new co-branded portal on Tuesday. The new Verizon Yahoo service includes antivirus, anti-spyware, parental controls and pop-up blockers, as well as on-demand music videos, 2GB of e-mail storage and unlimited photo storage.
"Yahoo will be the default portal for all new Verizon subscribers," said Bob Ingalls, president of Verizon's retail markets group. "And it will also be available to all existing subscribers. It's the first step in the relationship between the two companies, and we look forward to working closely with them."
The partnership marks the third major DSL deal Yahoo has struck with a large telecom, as phone companies search for ways to fend off the cable operators that are increasingly encroaching on their market.
Three years ago,. And two years ago, Yahoo signed a broadband deal with BT, a major U.K. telecom.
As in its other deals with telecoms, Yahoo will receive a slice of the revenue for every new Verizon DSL customer.
Verizon also announced on Tuesday that it would offer a new consumer DSL service for $14.95 with a download speed of 768kbps and upload speed of 128kbps. The new service, which is available to customers using Yahoo's, Verizon's or MSN's portal, is available only to customers signing a one-year contract.
Verizon now offers DSL customers three speeds of service. In addition to the new $14.95 service, Verizon offers a 1.5mbps download and 768kpbs upload service for $29.95 with a one-year contract. And for customers living in certain locations it offers a 3mbps download and 1.5mbps upload service for the same price.
And where the company is building Fios, its fiber-to-the-home network, Verizon offers that service in three distinct tiers: 5mbps download/2mbps upload for $39.95; 15mbps download/2mbps upload for $49.95; and 30mbps download/5mbps upload for $199.95.
In June, SBC announced a $14.95-a-month promotional deal to customers who signed up for a one-year contract. The SBC deal, which also uses Yahoo as its portal, includes 2GB of e-mail storage, antivirus protection and music videos. Customers, however, receive a faster download speed of 1.5mbps and upload speed of 384kbps.
"We aren't dropping prices," said Verizon's Ingalls. "This is a new product and we think there is demand for this kind of service from people who are now using dial-up."