xibro

A selection of the major network operators across the globe are reportedly meeting next week to discuss the option of developing their own mobile search engine, and displace the reliance upon Google, Microsoft and Yahoo.

Deutsche Telekom, France Telecom, Hutchison Whampoa, Telecom Italia, Telefonica, Vodafone and Cingular Wireless will all bounce around the possibilities that would see them develop their  own solution to mobile searches. To date, all of these names have hooked up with on or other of the big players in the search engine field.

Upon first contemplating this, it is hard to see why networks would challenge the proven specialists in the market. It’s difficult to believe that even with their combined investment, a Google/Yahoo killer search engine could be developed in a reasonable space of time. After all, look at Microsoft. Their Live engine is well recognised as significantly inferior to Google or Yahoo, and imagine the time and money that has gone into that.

However, as networks are squeezed on revenues from traditional avenues (voice, text etc) and smaller than hoped mobile data revenues, they are looking at Google’s deep pockets and thinking “we want a piece of that”. Advertising revenues could be a significant contribution to the network’s bottom line, if they can come up with a workable solution. Currently, mobile advertising spend stands at approximately $871m per year - but analysts predict that within four years, it will be in excess of $11bn; equivalent to 2% of global advertising spend.

Whether the mobile operators will evenutally come up with a shared branded solution, or make it white label using their own brands, is hard to tell. Knowing how they work I would plump for the latter option. Of course, this may prompt Google, Yahoo and/or Microsoft to try and get in on the deal and offer shared revenue plans.