BellSouth and Yahoo announced on Monday that they've struck a deal to offer a co-branded broadband service, called FastAccess DSL, starting in late 2006, in BellSouth's nine-state region, reports CNET. BellSouth customers would also have access to a free internet portal developed in conjunction with Yahoo, reports the New York Times.

Yahoo will receive a share of revenue for every new BellSouth DSL customer. In return, BellSouth will get a share of the advertising revenue generated via the portal.

With increased competition from cable, phone companies are attempting to attract new high-speed internet customers. Yahoo has similar deals with SBC and Verizon, and the BellSouth deal expands its reach in the U.S., though it does not have an agreement with the fourth and smallest Baby Bell, Qwest.

Like the other carriers, BellSouth hopes that the exclusive content on the co-branded portal will attract new DSL customers and dissuade current subscribers from leaving. With the portal, customers will get greater storage for email, music with better audio quality, higher-resolution photos and stronger security features.

The phone companies want to expand their businesses to offer a "triple play" of services - voice, video and high-speed data - with SBC and Verizon having committed to building the infrastructure for delivering TV service.