updated 10/18/2004 3:10:45 PM ET 2004-10-18T19:10:45

SBC Communications Inc., the second-largest local phone company in the United States, said Monday it will offer wireless Internet service for $1.99 per month as an add-on to its DSL broadband service with Internet giant Yahoo Inc.

The combined services should cost as little as $29 per month.

SBC said the FreedomLink Wi-Fi service will be available to current DSL customers for free through an introductory offer until April 15, and for $1.99 extra per month with a one-year commitment thereafter. For non-DSL customers, the FreedomLink Wi-Fi service will cost $19.95 per month with a one-year commitment.

SBC said it has more than 3,900 FreedomLink Wi-Fi hot spots across the United States where customers can connect to the Internet at speeds 50 to 100 times faster than dial-up. Roaming locations are not included in the offer.

The company said it plans to expand the number of hot spots to more than 20,000 by the end of 2006.

Shares of SBC were down 5 cents to $26.64 in late-morning trading on the New York Stock Exchange and shares of Yahoo fell 14 cents, or less than 1 percent, to $34.38 on the Nasdaq.

Copyright 2004 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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