Verizon, Yahoo! Team Up For DSL

    August 23, 2005
    WebProNews Staff

Verizon Communications Inc. and Yahoo! will announce today their launch of a joint DSL service that is, according to the AP, half as fast but just as expensive as Yahoo!’s SBC Communications link-up. At least the DSL service will still be cheaper than AOL’s $23.90 a month dial-up. One day AOL should change its name to AWOL (America Waiting Online).

The AP says Verizon’s service is in answer to competition from cable operators and dial-up providers who’ve taken a chunk out of their DSL market. Interestingly, the launch occurs just a short time after the federal government relaxed regulations to allow companies like Verizon to better compete in the Internet service provider market. Yet the deal between Verizon and Yahoo! was struck back in January, according to Geek News.

Hmmmm. Yes, interesting timing indeed.

The Verizon Yahoo! DSL service will run at a price of $14.95 per month for a transmission speed of 768 kilobits for downloads and 128 kilobits for upload-almost exactly half the speed of SBC’s DSL service for the same price. The $14.95 service is available with a one-year contract, the conclusion of which will bring loyal customers a price of at least $19.95. If you want speed like SBC’s, you’ll have to get the $37.95 per month offering. Sign me up, Verizon!

The DSL offering is a precursor of things to come, as the pair have also signed a multi-year agreement to offer fiber-based FiOS service, a broadband television offering similar to what cable and satellite companies offer.

Though it is unclear exactly what form broadband transmitted FiOS TV will take, the speculations about the service are impressive.

According to Jupiter Research, Verizon is shooting for 130 channels with at least 20 HD channels, as well as local channels. The company has already brokered deals with NBC, Universal, Showtime, and a string of others. The service is expected run in the mid to high $40’s.

The capabilities of FiOS, according to Broadband Reports, include 300 channels and DVRs capable of recording six programs at once, and 1800 on demand programs.

With any luck, the premium package won’t be a third more expensive with lesser capacity like their wireless and DSL offerings.