26 Aug 2005

A day after Verizon entered into a similar partnership with Yahoo this week, SBC and Yahoo said they will offer SBC's DSL customers an unlimited music download service for a flat rate, reports Red Herring. Yahoo announced a similar deal Tuesday with Verizon DSL service, which is being offered in a discounted but lower-speed version of DSL - at the same $14.95 per month that SBC introduced in June. The trend could spur other internet service providers and phone companies to follow suit.

The partnership is likely to benefit both Yahoo and SBC. "Yahoo Music Unlimited will benefit from being marketed to SBC DSL customers and SBC will benefit from being able to offer complementary entertainment services to its broadband customers," said Susan Kevorkian, a senior analyst with IDC.

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