SBC, 2Wire in Joint Venture

SBC Communications Inc., the second-largest U.S. local telephone company, said Monday that it would offer home entertainment including satellite television and video- and music-on-demand service through a joint venture with 2Wire Inc.

The service will be delivered through a 2Wire set-top box, SBC said. Closely held 2Wire, based in San Jose, makes data routers and wireless devices that link computers and TVs to the Internet.

Subscribers to SBC’s Yahoo digital subscriber lines and EchoStar Communications Corp.’s Dish Network also will be able to store digital photos and schedule program recordings through the Internet. The service, to begin by midyear, is separate from SBC’s plans to deliver video and Internet access through a high-speed fiber optic network, the company said. Pricing hasn’t been set, SBC spokesman Michael Coe said.

SBC said it would pay 2Wire a fee for each set-top box along with a monthly usage charge for each service user, Coe said. Customers would be billed for the set-top box and fees for services including movie rentals through video on demand.

Shares of San Antonio-based SBC fell 18 cents to $25.59 on the New York Stock Exchange. They have declined 2.1% in the last 12 months.