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Yahoo to Benefit from SBC Broadband Bet

Business Week writes that SBC's introduction of cut-rate DSL means big returns for Yahoo, which has a deal with SBC to provide all of its internet customers with services like email, instant messaging, and web hosting (via paidcontent). Yahoo collects an undisclosed fee from the telecom giant for the services. As lower prices lure users, Yahoo will gain significant new business with little effort. Already, "the vast majority" of SBC's 5.6 million DSL subscribers use Yahoo's services, according to an SBC spokesperson. This summer, Yahoo will partner with Verizon, the other leading DSL provider, with 3.9 million subscribers, to offer internet services to all of that company's new customers, as well as to existing subscribers who wish to use the Yahoo service.

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