Verizon Wireless announced a five-year deal with Microsoft to be the default search provider on the wireless carrier’s phones, as well as handling mobile advertising services.Microsoft CEO Steve Ballmer announced the deal Wednesday in Las Vegas at the Consumer Electronics Show.
Effective in the first half of 2009, Microsoft will power search on Verizon’s mobile portal as well as local and Internet search on the carrier’s feature phones and smartphones. Depending on the device, Microsoft Live search will allow Verizon customers to use voice commands as well as typed queries to get information.
The pact also calls for Microsoft to manage search and display advertising on Verizon’s mobile Web service, creating what the companies called “a one-stop integrated way for advertisers and ad agencies to reach mobile consumers.”
“Mobile search and mobile advertising offer tremendous opportunities for innovation and growth, and Microsoft is in a unique position to deliver a fully integrated, voice-enabled solution for Verizon’s customers,” Ballmer said.
The Wall Street Journal reported last November, that Verizon Wireless and Microsoft would share search ad revenue, with guaranteed payments to the carrier of about $550 million to $650 million over the five-year length of the deal.
That amount was roughly twice what Google offered, according to sources cited in the story.
John Stratton, Verizon’s chief marketing officer, emphasized in a statement that the alliance with Microsoft would help the company achieve its strategic goal of building mobile data revenue. “Wireless data–from business-to-business data to multimedia services–now represents more than 25% of our revenue,” he said. “Getting wireless search and advertising done right is critical to continuing to make wireless content relevant to our customers and our business.”
Google has a search and ad partnership with Sprint Nextel, while Yahoo is the default search provider on AT&T’s MEdia Net Web portal and on T-Mobile’s Web2go service in the U.S. and on T-Mobile phones in Europe.
Google is the default search provider on T-Mobile G1 phone, powered by the search giant’s Android mobile operating system.
According to Nielsen Mobile, Google has a 60% share of the mobile search market, Yahoo is second, with 18%, and Microsoft is a third, at 6%.
This is a big Loss to Google!
They need to make sure they dont lose more!
Good to see that Microsoft has guaranteed payments to the carrier of about $550 million to $650 million over the five-year length of the deal.
Alot of cash – You can see they expect the mobile industry GROW!
Regards,
Robbie
Now I hate Verizon even more.
Two bullies team up to force their services down our throats.
Big yawn to the consumer who will change the default to google… assuming verizon let’s us change it and I’m not sure they will.
Who are some of the largest defenders of trademarks?
Microsoft and Verizon.
And, who is going to profit from searches by Verizon’s customers?
Microsoft and Verizon.
And, how much of the searches will involve trademark infringements?
???
Ron Jackson pointed out how Verizon is infringing on others trademarks.
http://www.dnjournal.com/archive/lowdown/2008/dailyposts/12-24-08-2.htm
Correct
We have seen on countless times in our lives those who complain the most, are usually the worst offenders.
Like the ultra conservative members of Congress who want to pass laws telling you how you should live your life, they are the one’s usually found taking cash, using hookers, and having sex in the men’s bathroom.
The preachers who talk most against sex, usually have the most and not with their wives.
Same deal here.
It’s good to see them get together…. That is a real long term deal — who will get the better of it though? I think VZ.
Google could of bidded up and got it if they really wanted it, but really, they have so many more opportunities than just mobile, it’s really no biggie 😉
Google is everywhere….. Microsoft needed this deal badly. Investors will have at least something to be happy about for a day or two.
Best,
Mike