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From the News Desk
Wednesday, 30. January 2008

AT&T and Yahoo Takes Partnership to the Next Level


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AT&T Inc. and Yahoo have announced a new multi-year strategic alliance that paves the way for an even richer and more innovative online experience for consumers.

The agreement creates new advertising-based revenue opportunities for both companies from search and display capabilities from either a mobile handset or a PC.

The companies said newly signed-up customers of the broadband venture would see a new att.net portal, "powered by Yahoo," beginning in the second quarter of 2008. The upgraded software will incorporate Yahoo Mail, the world's most popular consumer e-mail service, and My Yahoo, which lets individual users personalize the various Web services they see when on the AT&T Internet service.

The deal covers not only historic AT&T customers concentrated in the Southwest and Western United States but also former BellSouth customers located in the Southeastern U.S. region. AT&T acquired BellSouth in 2006.

The new att.net gateway will be open to any AT&T customer, even those who do not rely on AT&T for Internet access. For example, an AT&T mobile phone customer could set up an att.net e-mail address to receive on phones or PCs.

"Our goal is to connect our customers to their worlds, wherever they live and work," said Randall Stephenson, chairman and CEO, AT&T Inc. "This new agreement with Yahoo reinforces AT&T's leadership in wireless and broadband and enables both companies to bring their respective strengths to the table to benefit AT&T's customers. It also reflects the benefits of establishing strong alliances in business today."

With this deal, AT&T's 14.2 million broadband customers would get access to co-branded versions of Yahoo's mobile Web properties and the Yahoo Go application. AT&T's YELLOWPAGES.COM becomes the lead local search experience on both the wireless and PC screens for AT&T customers, bringing easy-to-use local search capabilities to customers at home or on the go.

AT&T U-verse TV(SM) customers continue to have access to Yahoo content through the service's interactive AT&T U-bar feature, where available.

However, terms of the deal, which involves revenue sharing, were not disclosed. The new multiyear partnership agreement covers both display ads preferred by corporate brand advertisers and pay-per-click Web-search ads.



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