Google and Verizon have been enemies in recent times, as Google lobbied to break the iron grip that wireless carriers have on the access third parties can have to their subscribers. The search giant’s complaints were met with disdain by Verizon, who lashed back. It seems that both companies are looking to reconcile with each other with a deal that seems to benefit both sides.
Yahoo! has had a leg up on Google in the mobile search realm in terms of the number of deals it has contracted, locking up more than 60 deals with various carriers, including AT&T and T-Mobile. Google, meanwhile, has lagged behind with about 40 deals, including those with Sprint Nextel and Nokia. The addition of Verizon would be a big win for Google.
Though Google is already leading the mobile search market, adding Verizon to its stable of partners strengthens its hold on the leadership position is has become so familiar with.
A deal would place a Google search box on the home screens of Verizon Wireless devices, and would leave the door open for Google to take a prominent place on Verizon’s Web portal, as well as its FiOS television service.
Cassimir Medford at RedHerring.com notes that Verizon may be displaying a reaction to the increasing pressure that wireless providers are coming under to pump up their revenue. “That's because prices on mobile voice, not to mention mobile market saturation, have become increasingly competitive,” Medford said. “The rise in popularity of smartphones, which boosts mobile Internet search, and data are seen as one new stream.”
Google would obviously reap the benefits of mobile ad revenues it would derive from the deal.
As the mobile realm continues to grow and offer bigger financial rewards, expect the leading search engines to perpetuate the trend of establishing visible storefronts on the screens of mobile devices.
Sources:
http://www.redherring.com/Home/24715
http://www.efluxmedia.com/news_Verizon_Google_Join_Forces_For_Mobile_Search_22926.html
http://www.wired.com/techbiz/media/news/2008/08/portfolio_0822
Jason Hahn
e: jhahn221@gmail.com
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