WASHINGTON (Reuters) - SBC Communications (SBC.N: Quote, Profile, Research), the second-largest U.S. telecommunications company, plans to slash its price for high-speed Internet service by 25 percent, upping the ante in its rivalry with cable competitors.

SBC said on Wednesday it would offer broadband service for $14.95 per month to new customers who sign up online, $5 per month less than its previous lowest price. The deal, which requires a one-year contract, makes SBC competitive with many dial-up Internet services and is among the lowest prices for broadband in the United States.

Knight Ridder Digital has lifted fees for ads placed in its online classified section for merchandise-category goods in 22 of its 27 online markets. The company is betting that giving away some listings will allow it to make money in other categories.

The merchandise category includes items like appliances, music and sports and fitness gear. Previously, users placing classifieds to sell merchandise over $200 had to pay fees. Other sections, including automobiles, real estate and help wanted, are still paid placements.

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