By Eric Auchard Reuters - Friday, November 9, 1:25 p.m.
SAN FRANCISCO (Reuters) - The head of Yahoo's mobile division Marco Boerries quick to lock up distribution agreements that could generate hundreds of millions of dollars in advertising revenue before Google's mobile strategy takes off.
Boerries said in an interview that Yahoo's strategy to capture the market for mobile advertising was based on partnerships involving three manufacturers, operators and internet service providers.
Unlike Google, which unveiled Monday a platform for mobile Internet, Yahoo is focusing on advertising agreements in the area and did not intend to enter into the design of operating system mobile phones as rival Silicon Valley.
"It is he who will bring the biggest arsenal of partners and count as many page views," Borries said. In the world of online advertising page views since they are a reference for estimating the hearing.
Google seems ready for a frontal assault in the industry of mobile telephony, where operators are leading the game by choosing what features appear on the handsets to their networks. With its strategy, Google could one day become a major player but it will take time.
The first Web search engine is most likely to be busier by the technology concentrated on profits from advertising, which are essential for all actors of the Internet, said Boerries.
For Yahoo considers agreements with manufacturers as a means to fight against the agreements with operators only involve services funded by advertising. The group provides a service that facilitates online research for the discovery subscribers of Internet services.
The Google stock, which appears ready to dominate the mobile Internet in the same way he set up his leadership on the Internet on personal computers, rose to 750 dollars.
same time, as Yahoo has lost 11% to 27.90 dollars this week, weighed down by the reactions of analysts to its strategy in areas other than the mobile.
THE COMBINED AGAINST PARTNERSHIPS
Despite the stock market reaction, analysts say it is too early to bet on Google's dominance on the mobile market.
"I am now convinced that Google's strategy in the mobile Internet will create a great shock in the industry," said Jordan Rohan, analyst RBC Capital Markets. Moreover, he believes that Yahoo is right to focus on distribution agreements for its services. The first handsets equipped
Android, the operating system for mobile Google should come on the market from the second half of 2008.
The platform, which would partially solve the problems of incompatibility between different hardware and software, was designed in partnership with 33 manufacturers.
German operator T-Mobile, a subsidiary of Deutsche Telekom, and the manufacturer of handsets taiwainais High Tech Computer is so far the only people who are committed to offer handsets next year.
Yahoo has already signed agreements for its search services, messaging and mapping are present on some combination of major manufacturers, including Nokia, Motorola, Samsung Electronics, LG Electronics and HTC, is the most important, with the exception of Sony Ericsson.
Operators partners include Vodafone UK, 3, Hutchison Whampoa Europe. Yahoo has recently concluded an agreement concerning the provision of search and advertising with English Telefonica for 100 million users in several European countries and in most Latin American countries.
Yahoo has also signed advertising agreements with six operators in Southeast Asia and India. Asia North should follow.
Boerries believes that Google will have to face complicated negotiations with operators on the sharing of the benefits of new handsets.
He said he saw no good equation in a scenario which implies that Google will use advertising to subsidize both the new cell phone and monthly subscription to the operator.
"Whatever the advertising revenue of Google, they will only offset the subsidies paid to operators," he predicted.
If Google is really a phone running an operating system derived from Linux, Boerries said that nothing would prevent Yahoo from using Google handsets for its own services.
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