Yahoo! Losing DSL Partnership with AT&T?
Yahoo! sank 5% early Friday on reports that its DSL partnership with AT&T may be on the rocks. The Wall Street Journal, citing a person familiar with the matter, reported that AT&T is considering scaling back its alliance with Yahoo!. The deal, signed in 2001 and set to expire in April 2008, gives Yahoo! a share of AT&T’s revenue from high-speed Internet subscriptions using the company’s digital subscriber line technology.
AT&T’s change of heart marks a shift in power in the tech sector, where Internet companies are growing more dependent on infrastructre outfits such as AT&T and Verizon. “In fact, if not for fear of disrupting its customer base, we believe that the DSL companies could receive payment from Google rather than paying Yahoo!, if they chose to switch content providers,” Devitt wrote.
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