Atlanta and Sunnyvale,BellSouth (NYSE: BLS) and Yahoo! Inc. (Nasdaq: YHOO), have formed an alliance to provide co-branded broadband service to BellSouth® FastAccess® DSL subscribers throughout BellSouth’s nine-state operating region.

The new service will be provided free to all new BellSouth residential broadband subscribers on all tiers of service. BellSouth’s existing base of subscribers will have the option to select the co-branded service.

It will be available late this year.

The co-branded offering will include a customized browsing environment, personalized broadband homepage with access to more than 750,000 content sources from across the Web, e-mail with industry-leading spam protection and two gigabytes of storage for primary accounts, and a suite of digital photos features, including unlimited storage and access to high-resolution downloads.