Steve Bosak, newsfactor
The deal would give Verizon users a one-stop search screen rather than the layered searches they have today. The state of mobile search is chaotic, as each carrier has implemented its own structure and service. Many users already bypass the carrier search interfaces and log onto Google and Yahoo with phone browsers.
Chris Ambrosio, director of wireless strategies at Strategy Analytics, a worldwide analyst firm, said, "[Wireless] operators need to do more for their customers if they ever hope to monetize the wireless search market." He said it makes sense for Verizon to team up with Google, as the search giant already has experience in the wireless market.
Who Owns the Data is Key
Reportedly Google and Verizon have been in discussions for nearly a year, with ad revenue and search data retention the key sticking points. Although ad revenue is a paltry $200 million across the entire mobile market now, according to industry estimates, that will increase exponentially if wireless users have better search tools.
Enter Microsoft, Google and Yahoo. Verizon is rumored to have flirted with using Microsoft's search capabilities before entering into serious negotiations with Google. AT&T wireless is already carrying the Yahoo brand as an expansion of their partnership on the DSL front.
Retention of search data and who gets it is the real mother lode, however. Vendors can mine the data to not only optimize their search capabilities but also to better serve up targeted advertisements and gather potentially useful demographic data. Verizon may be digging in its heels in terms of owning that data, for good reason.
Ambrosio said, "Verizon owns a significant user base, and they don't want Google marketing directly to [users], bypassing them."
Melding Ringtones with Text Search
Ambrosio said all the search-engine providers will be players, including Microsoft. But he thinks Yahoo may have an edge so far. "Yahoo has been far more active in mobile technology, getting into Wed-based content and serving data to mobile users," he said.
While Verizon may be on the cusp of a deal with Google for a unified portal and Web search service, so far it is a holdout in supporting Google's Android phone operating system.
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