Microsoft trumps Google on Verizon search deal

Verizon Wireless officially confirmed its much-rumored mobile search partnership with Microsoft is a done deal. Per terms of the five-year agreement (formally announced Wednesday evening to coincide with Microsoft CEO Steve Ballmer's keynote appearance at the annual Consumer Electronics Show, but inadvertently leaked earlier Wednesday by Verizon Communications CEO Ivan Seidenberg), Microsoft will provide portal, local and Internet search as well as mobile advertising services on Verizon devices--the partnership goes into effect during the first half of 2009, when Microsoft Live Search will launch as the default search service on new Verizon Wireless feature phones and smartphones.

According to Verizon, Live Search integration will enable easier access to context-relevant search results--depending on the handset in question, some customers will be also able to use voice commands, typed queries and location-aware searches to deliver more customized search results including maps, directions, traffic updates, local business information, theatres and showtimes, gas prices and weather. The pact additionally extends to search results that include news and entertainment content like full-track music downloads, videos and games. Verizon subscribers may access Microsoft Live Search from their device's home screen, by application download or via the operator's Mobile Web service. Microsoft will also manage Mobile Web search and display advertising, promising a one-stop integrated channel for advertisers and ad agencies to target mobile users.

Financial details of the agreement were not disclosed, but it is believed Microsoft will pay handsomely for the privilege of beating arch-rival Google at its own game. As of August 2008, Google was the frontrunner to nail down the Verizon mobile search deal--at that time, The Wall Street Journal reported the firms would collaborate on a one-stop, Google-branded search platform spanning from local information to mobile content acquisition. Insiders claimed Google and Verizon Wireless agreed to share advertising revenues, but the web services giant's demands for access to consumer behavioral data proved a significant hurdle. Microsoft emerged as a dark horse candidate in November, reportedly promising Verizon an even larger share of resulting advertising revenue as well as a guarantee of substantially higher payments, according to sources close to the negotiations.

For more on the Verizon/Microsoft deal:
- read this InternetNews article