Will Yahoo Replace Its Mobile Search With Microsoft's Bing?

Bing Mobile Maps

One of the conditions of Yahoo (NSDQ: YHOO) and Microsoft’s search pact was that Yahoo would be able to continue using its own search for mobile devices, and going forward it would have the option to use Microsoft’s technology if they wished.

So, the question is, will Yahoo replace its mobile search with Bing?

In a brief update, Yahoo said it hasn’t made any definitive decisions yet, and “will carefully consider whether and how to implement Microsoft’s mobile search services, and our approach may differ on a country-by-country basis,” according to Investor’s Business Daily (via Cellular-News).

Analysts told the publication that Yahoo wants to keep its options open because of the mobile ad market has huge growth potential with revenues in the U.S. alone expected to jump to $3.3 billion in 2013, according to eMarketer. It’s also substantially ahead of Microsoft (NSDQ: MSFT) in mobile. In June, Yahoo ranked No. 2 in mobile search with more than 5.5 million visitors, whereas Microsoft ranked No. 4 with more than 2 million visitors, according to Nielsen. But even together, they wouldn’t be able to beat Google (NSDQ: GOOG), which had a commanding lead with 22 million visitors.

If the two decide to team up, they could gain significant ground. Together, Yahoo and Microsoft could be the largest mobile search provider in the U.S. in terms having exclusive deals with three of the four major U.S. wireless carriers, spanning 200 million subscribers. The one exception would be Sprint (NYSE: S), which uses Google

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