Nov, 07 2008

Just a few short weeks ago, Google was putting the finishing touches on a deal with Verizon that would make their search engine the default on all mobile phones the carrier would… carry. But following up on a failed Google-Yahoo search partnership, Microsoft is on the brink of stealing the Verizon Mobile search deal right from under Google’s feet.

The Wall Street Journal is reporting that Microsoft is offering Verizon a greater guaranteed figure from the search deal, where the search engine and wireless company would share revenue generated from mobile search with Verizon devices.

We know that Verizon and Google have had their differences before and the Big Red hasn’t been exactly been Big Easy when it comes to opening up to Android. In fact, they seem the most reluctant of all carriers and have even got into heated spats with the search engine giant regarding the spectrum auction and FCC regulation of acquired spectrum.

As far as I’m concerned, Verizon taking a little more money to put an inferior product on its phone by default is a classic mistake. I won’t pretend to know any of the terms or figures of the deal – because I don’t – but there is a lot at stake. Verizon doesn’t seem eager to do Google any favors as the Big G just ran up on the wireless industry and tried to claim Home Field.

So will Verizon go with Google or Microsoft? Will they do it based on money only or are there other dynamics in play here?

[Via WSJ]

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