SBC gets FCC long distance approval, partners with Yahoo!

SBC Communications Inc. has won unanimous Federal Communications Commission approval to offer long distance service to Arkansas and Missouri customers.

According to an SBC news release, the action follows the company's successful entry into Texas, Kansas and Oklahoma long-distance service.

Forrest Miller, president and chief executive officer of SBC Southwestern Bell Telephone Company, said, "Long distance is more than just another product it rounds out SBC's full-service bundles and is key to capitalizing on data, our company's single biggest growth opportunity and new core business."

The approval also makes SBC South-western Bell the first former regional Bell operating company to have all of its states approved to provide long distance service. Effective Nov. 26, SBC Long Distance will officially be able to launch service in Arkansas under the SBC Southwestern Bell Long Distance brand. The Missouri launch will follow final regulatory approval by the Missouri Public Service Commission. The PSC already has given its unanimous recommendation for approval to SBC's FCC application.

Details on Web site

Miller said that upon service launch, complete details of SBC's long distance offers will be made available at the company's Web site, www.sbc.com.

SBC Communications Inc. now will continue to focus on securing regulatory relief in its remaining markets in Cali-fornia, Nevada and the SBC Ameritech region, according to the release.

"We look forward to the day when we can offer long distance service to customers throughout our 13-state service area," said Cassandra Carr, SBC senior executive vice president of external affairs.

On Nov. 14 SBC announced the formation of a partnership with Yahoo! Inc. to provide broadband access to millions of consumers in the SBC 13-state region.

Leading companies

The move pairs Yahoo!, the nation's leading Internet destination, with the nation's leading DSL Internet provider. The two companies plan to offer DSL Internet and dial-up service. Expected to launch beginning in mid-2002, the service, the first of its kind, will include a suite of Yahoo! and SBC customized products and services, including many optimized for broadband.

Edward E. Whitacre Jr., chairman and chief executive officer of SBC Com-munications Inc., said the alliance would strengthen both companies' leadership positions in the broadband and Internet services market.

Yahoo! Inc. Chairman and Chief Executive Officer Terry Semel said, "As access relationships become a more important part of our strategy, we could not ask for a more solid partner than SBC."

The companies plan to promote the "co-branded" service in online and offline marketing programs to attract new customers, as well as change SBC's existing customers to the service. Yahoo! and SBC will target the more than 23 million DSL-eligible homes and businesses within SBC's 13-state region.

Per-subscriber payments

According to the release, the agreement provides Yahoo! monthly per-subscriber payments from SBC, promotion through SBC's sales channels and customer service teams and the ability to offer bundled premium services by leveraging SBC's communications and billing infrastructure.

One example of a premium service the companies plan to offer is United messaging, a tool that enables users to check, store, manage and reply to voicemail, faxes and e-mail received from multiple sources through an interface on their home/start page.

Key terms of the agreement for SBC include a share of Yahoo! non-subscriber revenue on advertising, e-commerce and premium features and services on the portal, and Yahoo!'s commitment to DSL as its preferred broadband solution.

"The winner of the broadband war will be the company that delivers the best broadband-powered content, communication services and features to its customers," said James S. Kahan, senior executive vice president, corporate de-velopment for SBC Communications.

The DSL and dial-up products will be bundled with all SBC consumer Internet sales, according to the release.