That makes AT&T the first U.S. carrier to integrate Yahoo's mobile-search service directly into its portal, and gives Yahoo a win over rival Google in the latest round of the nascent mobile-search battle. Yahoo boasts more than 60 partnerships with mobile operators around the world.

Yahoo oneSearch gives mobile-phone users who search AT&T MEdia Net access to news, financial information, weather conditions, Flickr photos, and Web images, as well as Web and mobile Web sites. Yahoo oneSearch will also display relevant ringtones, wallpaper, games and other content available in the AT&T MEdia Mall within search results. And AT&T's YellowPages.com will offer local search information to customers as part of the agreement.

Relevant Mobile Results

"Our customers want mobile search to be convenient and intuitive, and Yahoo oneSearch is an important step for us in delivering that level of experience to them," said Michael Bowling, vice president of converged services at AT&T.

Yahoo oneSearch returns results grouped around the user's query intent. For example, when users search for a sports team, Yahoo goes beyond just returning the team's home page. Instead, Yahoo also returns the latest scores, schedules, team profiles, roster, news, images. Likewise, if a user searches for a movie, Yahoo returns more than show times at local theaters. It also returns reviews, news articles and information on the cast. It's a move toward relevancy on the mobile-search front.

"Yahoo oneSearch has proven to be one of the leading mobile Internet search products on the market, and Yahoo has been successful in partnering with carriers globally," said Scott Ellison, vice president of mobile and wireless communications at IDC. "This partnership with AT&T will enable Yahoo to reach tens of millions of mobile Internet users in the United States and provide advertisers with reach and scale."

Battling for Global Supremacy

Greg Sterling, principal analyst at Sterling Market Intelligence, agrees with Ellison. This is an especially timely announcement, he said, given that Yahoo has fallen into the second position in mobile search behind Google.

"The mobile-search market share seems to break down in a very similar way to the desktop," Sterling said. "Google and Yahoo users seem to be translating their desktop loyalties onto mobile devices, although Yahoo Mail is one of the largest mobile sites separate from search."

Yahoo's deal could also give it some traction with advertisers. Would-be mobile advertisers have long complained that distribution is slim and the audience is fragmented. With Yahoo adding 70 million potential users to its pool of searchers, it has tapped into the distribution key that could lead some of its display advertisers to take a second look at mobile.

"On a global basis, Google and Yahoo are vying for mobile supremacy. There's plenty of room for both to succeed. What's more interesting is whether or not anybody else is going to have any part of the pie," Sterling said. "Clearly, the answer is yes, but who's going to be in a position to have the kind of reach that these companies are already showing?"