Faced with declining revenues as calls become cheaper, network operators are determined to secure a large slice of the lucrative search advertising market. In the United Kingdom alone, more than 20 percent of subscribers are expected to have access to mobile Internet at broadband speeds by the end of 2007, which should prompt a dramatic increase in the use of search engines via mobile phones. The initiative will come as a surprise to Google and Yahoo!, which have lost no time in striking deals with mobile operators and handset makers.

But the mobile industry believes it can retain a greater share of advertising revenues by developing its own service. A joint approach is essential, because mobile networks will need to offer advertisers a large audience if they are to challenge the U.S. search giants. The four big operators in Britain - Orange, owned by France Telecom, O2, part of Spain's Telefonica, Deutsche Telekom's T-Mobile and Vodafone - will all be represented at the meeting next week. The groups involved have a combined customer base of 600m mobile phone users worldwide. http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/02/04/cnsearch04.xml; February 5, 2007