Mobile Giants Plan Rival to Google

By NewsFactor Network | February 5, 2007

With 3GSM, one of the biggest mobile communications conferences, just a week away, rumors are swirling about a major announcement that might very well shake up the world of mobile search.

Rumor has it that Europe’s largest telecommunications groups plan to form a mobile search engine to go up against industry heavyweights Yahoo and Google.

According to conflicting news reports discussing the rumors, France Telecom, Deutsche Telekom, Hutchison Whampoa, Telefonica, Vodafone, and Telecom Italia are among the European companies planning to participate.

Reports also indicate that one U.S. company, Cingular, will join the group.

All About Control

The idea behind this collective apparently is to create mobile search technologies for smaller telecommunications companies that might be craving a piece of the market for mobile advertising.

That market, at least according to research and marketing firm Informa Telecoms & Media, is growing dramatically. Informa predicts that by 2011, nearly 50 percent of all mobile phone subscribers across the world will be browsing the Web from a mobile handset, making the associated ad deals valuable indeed.

Industry analysts are saying the collective represents an attempt to snag a piece of the Google magic. “Google is making so much money,” said Rob Enderle, principal analyst at the Enderle Group. Everyone wants a piece of it.” As mobile calls become less expensive, mobile carriers will be desperate to bring in cash to boost revenues, he explained.

But by most accounts, going up against industry heavy-hitters will be more than an uphill battle. Experts point out that mobile search is relatively new territory for the carriers and that revenues from the mobile Internet remain largely uncertain.

Dragging Its Feet

Chris Coffman, an analyst with Informa, said he wouldn’t be surprised if the
rumored announcement might be just a way for the companies to bide time while…

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