Verizon Wireless to implement Microsoft search engine

Posted by Alisa Zykova on January 8, 2009 at 10:18 PM

Devices using the U.S. network provider Verizon Wireless will employ Microsoft's Live Search as the default search engine instead of Google, Microsoft CEO Steve Ballmer announced at the 2009 Consumer Electronics Show in Las Vegas on Wednesday, Fortune reported.

The "strategically critical" deal will be implemented in the first half of 2009 and will last for five years, according to Fortune. Microsoft's competitor Yahoo! has agreements with mobile phone operators companies AT&T and T-Mobile while Google's search engine serves network provider Sprint.

Microsoft previously mentioned that it may provide guaranteed payments of amounts ranging between US$500 million to $650 million to Verizon Wireless that would be spread out over the five-year period. However, monetary rewards may not be the focus of the venture, Fortune reported in an article posted by CNN Money.

The mobile search engine field is expected to expand as smartphone use gains popularity. Nielsen Mobile data shows that only 20 percent of current mobile phone users utilize search engines. Mark Mahaney, an analyst for Citi, predicted that the industry may jump to US$2.3 billion by next year, according to Fortune.