Yahoo Fueling DSL Demand?

How important is Yahoo or any other portal’s role in the DSL world, in light of the company’s relationship with SBC and now Verizon? Piper Jaffray’s Safa Rashtchy, said in a research note that Yahoo’s name, reputation, and portfolio of services might make telephone companies more competitive with cable operators.

I think that’s probably very simplistic, and if the relationship stops at that, I would be surprised. The quote from Andy Belt, president of Adventis, a Boston-based consulting firm, is more indicative: “Both SBC and Verizon have landline video businesses that they plan to launch in the very near future, and the Yahoo brand could provide them with some real currency.”

Yahoo’s importance to the telephone companies is demonstrated by the fact that in their partnerships with Yahoo, the phone companies have reduced their subscriber fees to the point where analyst Bruce Leichtman said they couldn’t be making any money.

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