Verizon in Talks with Google for Mobile Search Partnership
Verizon Communications is reported to be in talks with search engine giant, Google over a mobile search tie up for its Verizon Wireless subsidiary. The Wall Street Journal reported that the deal would make Google the default search engine on all Verizon phones in exchange for a share of the advertising revenues.
The newspaper said that the two sides are still negotiating on key issues, such as Google's desire to save information from user cellphone searches. The networks operators have traditionally been wary about allowing such information to be passed to 3rd party suppliers.
Verizon Wireless' internet portal currently has several different search options depending on which service is being used. The aim of the deal is to unify all the services behind a single search platform and boost traffic to its web services. Of the 36 million Verizon Wireless customers who access the internet using their mobile phones, just over 13 million use a search service, according to estimates from Nielsen Mobile.
Another survey also found that Google dominates mobile search services with a 61% market share, followed by Yahoo with 18% and MSN trailing with just 5 percent.
The deal could be later expanded to Verizon's landline and cable services. It is expected that any deal will take a month or two before it is signed.
In a recent interview on CNBC, Google's chief executive Eric Schmidt said that he expects the search giant to eventually make more money from services provided to mobile phones than it currently makes from desktop computer services "We can make more in mobile than desktop eventually. The reason [is] because the mobile computer is more targeted. Think about it: you carry your phone everywhere, it knows all about you. We can do a very, very targeted ad. Over time, we will make more money for mobile advertising."
On the web: Wall Street Journal
Posted to the site on 24th August 2008
