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Verizon and Yahoo extend portal deal

Companies extend agreement to provide Verizon Internet users with Yahoo's Web portal, but will Yahoo be able to get a piece of Verizon's mobile action?

Verizon Communications said Wednesday that it's extending its agreement with Yahoo to provide Verizon Internet users with Yahoo's Web portal.

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The companies' multiyear agreement replaces a similar arrangement the companies had in place since 2005. Verizon didn't offer details about the duration or financial terms of the new deal. But it did say Yahoo's portal will be the first choice offered to subscribers of its DSL and Fios high-speed Internet service. Verizon will also offer its own branded portal and the MSN portal from Microsoft.

The deal between Verizon and Yahoo appears to only cover Verizon's wired broadband services. The companies made no mention of a deal that included services for Verizon Wireless, which is jointly owned by European carrier Vodafone and Verizon Communications. Recent news articles have reported that Verizon Wireless is close to striking a deal with Google on mobile search and advertising. Yahoo also offers mobile search and advertising products that Verizon Wireless could use as well. AT&T, which has a similar broadband portal arrangement with Yahoo that Verizon has, also has chosen Yahoo as one of its mobile partners.

Verizon Wireless hasn't yet announced any kind of arrangement with Google, so it will be interesting to see if Yahoo can parlay its broadband deal into anything for mobile. Yahoo has a strong portfolio in mobile and it has done well so farin the mobile market. Like Google, it has adapted some of its traditional Web services, like search, for the mobile market.

Earlier this year, Yahoo redesigned its mobile home page and announced Yahoo Go 3.0, an open platform for widgets created by outsiders. It's also been rolling out new partnerships for mobile advertising. In addition to providing search and display advertising for AT&T, Yahoo has also won big deals with other carriers such as Vodafone and T-Mobile in Europe and Rogers in Canada.