Verizon, Yahoo To Offer Cut-Rate DSL

Verizon and Yahoo will offer a low-cost broadband service, a move sure to put pressure on cable broadband providers.

The digital subscriber line offering will cost $14.95 per month and include antivirus software, on-demand video and unlimited photo storage, according to joint announcement by the providers.

Subscribers will be able to opt for two higher speed options at higher rates.

The partnership, which mirrors a highly successful deal between SBC and Yahoo, will put additional pressure on dial-up service providers such as America Online that still charge upwards of $20 per month.

It’s also aimed at cable companies. To date however Comcast , the nation’s largest cable operator and broadband provider, has refused to be drawn into a price war. Instead, it has stressed higher speeds than DSL and packages that include TV service.

Lower broadband prices are partially responsible for increased high-speed adoption in the United States. More than 43 percent of online U.S. households now connect via broadband, according to a new report from JupiterResearch, an IT research firm owned by the same parent as this Web site.

The figure is expected to jump to nearly 80 percent of online households by 2010, creating new opportunities for online portals to add users by offering customizable content such as entertainment, blogs and personal pages, analysts at the firm said.

AOL, which has been steadily losing dial-up customers, recently redesigned its portal, which features video, video search and unique content, as it repositions for broadband users.

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