SBC, Yahoo to Launch Internet Service

Phone company SBC Communications Inc. and online giant Yahoo Inc. have teamed up to launch an Internet service that they hope will challenge AOL and Microsoft Corp. for dominance of the dial-up market. SBC and Yahoo plan to add a cobranded high-speed Internet access service this summer. SBC is a leading provider of faster, broadband service. The companies did not disclose financial terms, but officials said SBC and Yahoo will share revenue from online advertising and commerce.

The service, called SBC Yahoo Dial, will charge $21.95 a month; less for customers who order other services from SBC. Far more U.S. households use dial-up service instead of high-speed access through phone lines or cable modems.

Shares of SBC fell $1.14 to $33.15 on the New York Stock Exchange. Yahoo shares slipped 34 cents to $15.68 on Nasdaq.