SBC Friday announced a promotional offer for SBC Yahoo DSL of $29.95 per month with a one-year term commitment.

Previously, the general market offer was $34.95 per month, and a $29.95 monthly rate was offered only in combination with certain SBC service bundles.

SBC’s price reduction follows a recent similar move by Verizon, which lowered its DSL price to $34.95 per month from $49.95 and upped the speed from 768K bit/sec to 1.5M bit/sec. This service is available at $29.95 in a bundle with Verizon local and long-distance services.

The SBC promotional offer, available through June 30, also includes a credit on a DSL modem and waives the activation fee. It is only available to new SBC Yahoo DSL customers, while Verizon’s is available to new and existing customers.

Additionally, SBC has reduced the price of SBC Wi-Fi wireless home networking gateways to just $50, after a $99 rebate. This gateway usually retails for more than $300, SBC says.