SBC Communications will use a new set-top built by 2Wire Inc. to deliver a wide range of services and applications, including satellite-delivered television, digital video recording, video-on-demand and Internet-based content from Yahoo!

SBC, which presently offers television programming through a marketing agreement with EchoStar Communications, said the new set-top will also deliver music-on-demand, caller ID, photo sharing and remote access services. For VOD, customers will use the box’s high-speed data connection to download movies and other content. Down the road, SBC said it will offer remote access via Cingular wireless phones.

SBC said the joint venture with 2Wire is part of a strategy to deliver services through fiber and DSL connections. The telco expects to rollout the new set-top and bundled service in mid-2005.