The deal will bundle Yahoo!'s free services--such as e-mail and digital photo services--with BellSouth's broadband access. BellSouth subscribers also will receive for free certain premium Yahoo! features, including access to Yahoo!'s music library and unlimited photo storage.
The two companies have agreed to market the BellSouth/Yahoo! service on Yahoo!'s network of sites, as well as in BellSouth's advertising.
As is the case with Yahoo!'s deals with SBC and Verizon, Yahoo! will receive a cut of revenue for new BellSouth broadband subscribers, while providers will receive a share of ad revenues for display ads placed on co-branded sites.
BellSouth has joint control and 40 percent ownership of Cingular Wireless--the nation's largest wireless provider, with 51.6 million customers.
A deal with Qwest Communications International Inc.--smaller than Yahoo!'s three existing partners--would give Yahoo! access to virtually every broadband-connected home in the United States.
Verizon's co-branded service with Yahoo! officially launched last month, while SBC expanded its existing relationship with Yahoo! at the end of last year.