(24 August 2005 2:00 pm)

MUMBAI: It is a move aimed at encouraging Americans to switch from dial up services to a high-speed broadband connection. US communications services provider Verizon has announced a deal with Yahoo! to offer a new, fully integrated DSL service to Verizon Online DSL subscribers.

The service, named Verizon Yahoo! for DSL, combines the strengths of the two companies, including a range of broadband speeds at affordable prices and a wide variety of premium Yahoo! features at no additional charge.

Verizon's marketing alliance with Yahoo displaces the earlier deal it had with Microsoft for MSN to be its web portal. Yahoo has created a web portal for Verizon customers.

Verizon has also introduced a new, entry-level consumer DSL Internet access service with a maximum connection speed of 768 Kbps (kilobits per second) downstream and 128 Kbps upstream for $14.95 a month with an annual service agreement, designed to attract dial-up users to broadband.

In June, SBC Communications had announced that it would sell broadband access for $14.95. But the low-cost service, though twice as fast as Verizon's new service, is a promotional offering.

The pricing is aimed at converting dial-up customers and competing with cable companies. Comcast and other cable companies charge over $39.99 for high-speed lines.

The new service includes premium Yahoo! features valued at over $200 a year at no additional charge, including premium e-mail, 100 MB (megabytes) of storage, an all-in-one security suite and commercial-free Launchcast Radio service.

Verizon’s retail markets group president Bob Ingalls says, "We are breaking down the price barrier for people who want high-speed Internet service, but have not had a place for it in their budgets. With speed that’s faster than dial-up, and at a price that’s lower than many dial-up service plans, our new service will promote the use of broadband, attract more subscribers to Verizon DSL and further increase our competitiveness with cable modem service providers."

"Our new DSL service and our alliance with Yahoo! reflect our commitment to offering Verizon broadband customers real choices and exceptional value. From the busy small business that shares large documents, to the young adult who enjoys online games, to the grandparents who enrich their e-mails with photos – Verizon offers a range of great speeds, affordable prices and superior content and services to meet every need."

Verizon already offers Verizon Online DSL service to qualifying consumers with maximum connection speeds of up to 3.0 megabits per second (Mbps) downstream and 768 Kbps upstream for as low as $19.95 a month for the first three months and $29.95 a month thereafter when purchased with an annual service agreement or in combination with a qualifying package of calling services from Verizon.