Verizon, Yahoo! launch cheaper Internet service

Verizon and Yahoo! today will formally launch the content and co-branding strategy announced last January and also will announce a $14.95 Internet access service, not unlike what SBC Yahoo is offering.

Verizon's cheaper service is for a one-year term and features 768 kilobits per second downstream and 128 kbps upstream. SBC features 1.5 mbps downstream for its short-term $14.95 offering.

The partnership will allow Verizon Online’s DSL and FiOS customers to access content, applications and features developed by Yahoo! including music, anti-virus and other security programs, email and parental controls.

The two companies have a press conference scheduled for 12:30 Eastern time, at which they will formally unveil features now available to Verizon customers, in addition to what Verizon currently offers through a partnership with MSN. The service provider has said it will continue the MSN arrangement to offer its customers a choice.

Yahoo will receive monthly per-subscriber fees from Verizon for providing the co-branded content and applications. Yahoo already is closely linked with SBC through SBC Yahoo! and with broadband service providers in Japan and Europe.

Verizon Yahoo! customers can set up a personalized home page and have a single sign-on via their broadband service.

Though Verizon Yahoo!, broadband customers will be able to access more than 150,000 Web-based content sources; maintain e-mail with Spam protection, 2 gigabytes of storage and continued access to Verizon Online e-mail accounts; benefit from safety and security tools including parental controls; use digital photos tools including unlimited storage; and access content such as high resolution downloads; customizable radio; a music video catalogue, and other premium broadband content.

The two companies this morning are expected to unveil an aggressive marketing campaign to promote the partnership to Verizon Online users, with intent to attract some crossover users from the cable modem world.