Yahoo to expand broadband offering throughout US
Yahoo is planning to offer broadband services throughout the country according to Yahoo CEO Terry Semel according to this New York Times story (registration required):
Fee-based services were the fastest-growing area for Yahoo. It said it had a combined total of 2.2 million subscribers for its broadband service; a dial-up Internet service, also offered with SBC; its rapidly growing online personals service; and a range of other, smaller offerings. That is up from 375,000 subscribers a year ago. Revenue from those services, which also includes the HotJobs site it acquired in January 2002, was $9.4 million. Excluding HotJobs, that represented a 65 percent increase.
...Safa Rashtchy, an analyst with U.S. Bancorp Piper Jaffray, said that such deals had the potential to be significant for Yahoo. "SBC hasn't produced a lot of revenue for Yahoo yet, but we estimate it will be $100 million this year," he said. "If they get the other two-thirds of the country, that could be $300 million a year."