Branching OutOriginally announced last November, Yahoo!'s deal to offer cobranded DSL-based high-speed Internet access is one of several initiatives Yahoo! has taken -- with SBC or other partners -- to find new revenue to supplement its historical dependence on Internet advertising. SBC and Yahoo! have already launched the cobranded dial-up Internet access service they unveiled simultaneous with the DSL offering. Since then, the two companies have expanded their partnership to include forthcoming Internet services for small businesses and SBC's plan to sell placement in Yahoo!'s online yellow pages.
|Off Peak |
Yahoo! shares' long slide
Though Brown acknowledges that the financial terms of the Yahoo!-SBC agreement remain a mystery, he says he expected the DSL service would have accounted for "an overwhelming majority" of this year's expected revenue from the companies' collaboration. "Accordingly," he writes, "any delay in this product's nationwide rollout could materially impact the access revenue" Yahoo! had forecast. Yahoo! has said that it plans to launch the DSL service this summer, quickly drawing to a close. Furthermore, notes Brown, when Yahoo! debuted its alliance with SBC last November, the company indicated it would be the first of many such access deals. But, says Brown, Yahoo! hasn't announced any additional deals; rather, a major potential DSL partner, Verizon ( VZ), allied itself with Microsoft ( MSFT) instead. A Yahoo! representative wasn't immediately available for comment.