Telephone giant SBC Communications on Monday said it has struck a deal with home networking device maker 2Wire to create a joint venture that will offer a home entertainment service that combines satellite programming, digital video recording, video-on-demand and broadband content to consumers via a set-top box.

The venture, which will be called SBC Media Solutions, will combine content delivered via satellite and broadband to enhance the SBC Yahoo! DSL service. Beginning in the middle of the year, the new service will be available to customers who have both the SBC Dish Network and SBC Yahoo! DSL services. As part of the partnership, the venture will develop a set-top box.

Ed Cholerton, VP of SBC DSL, will serve as CEO of the new venture. 2Wire President and CEO Brian Hinman will be president.

The creation of SBC Media Solutions comes as SBC embarks on an ambitious $4 billion plan to build a fiber network to deliver video services to residential customers starting at the end of this year.