Verizon is set to begin offering a lower-bandwidth DSL package at $14.95. With bandwidth at 768k/128k, it’s intended to draw subscribers away from dialup.

Verizon Online DSL provides up to 3Mbit download speed for $29.95 per month with a one year contract with either Yahoo! or MSN as the Internet service provider.

A source familiar with the packge told Reuters that the package was to be offered beginning Tuesday with an expanded partnership with Yahoo! However, as of late Tuesday no information was yet available on the Verizon web site regarding the new package. (Update: The $14.95 Verizon Online DSL package was posted to the Verizon web site on Wednesday.)

“This is a new service with speeds that are 10 times faster and a price that’s lower than many plans out there,” said Bob Ingalls, president of retail markets for Verizon. “There’s a significant market opportunity for us to convert dial-up users into broadband.”

SBC currently offers a $14.95 DSL package with Yahoo! as the ISP, with 1.5Mbits download speed.