MS, Google to lock horns

The next battlefield in the search engine war between Microsoft and archrival Google will be in the mobile phone space, industry experts say.

Google has become synonymous with desktop-based searches and holds around 80% of the global market share. On the other hand, Microsoft's Bing search engine holds around 17% of the US market only and has little presence in other markets, especially those in developing countries.

However, in countries such as SA and its neighbours, the lack of fixed-line broadband capacity means the mobile phone is fast becoming the information technology tool of choice.

In August, Microsoft - in a strategic alliance with Blue Label Telecoms - launched “OneApp”. The application allows basic cellphones that are commonly found in emerging markets to access other applications such as Facebook and Twitter.

“Microsoft may find itself at an advantage over Google in the mobile search wars as its OneApp solution has Bing embedded in it,” says Jonathan Gluckman, new business director for paid-search company Clicks2Customers.

Gluckman points to a recent report by local research firm BMI-TechKnowledge that forecasts that the number of mobile phone Internet users in SA will rise to around 15 million people by 2013. There are currently about 38 million cellphone users in the country, meaning that 85% of the population has access to such a device.

He also points out that Google is the most dominant Internet search engine in SA, with little, if any, competition from any other search engine locally or internationally.

Ryan Smit, BMI-T analyst, says the number of mobile Internet users could have already reached the 15 million mark.

“Our research was based on users being conscious of the fact that when they use data over their cellphones, they are actually using the Internet. For instance, many users of instant messaging service MXit are not conscious that they are using either data or the Internet,” he says.

Clicks2Customers analyst Derrick Kotze says: “The interesting thing about Microsoft's OneApp is that it is very light. It is aimed at allowing people with basic cellphones to get some kind of Internet functionality. However, its default search page is Microsoft's Bing search engine.”

Kotze says that while Google has become the market name for conducting an Internet search, it is becoming less of a direct reference to the US search engine giant, and more of a verb.

“Already we are noticing users who have Microsoft browsers, such as Internet Explorer, and are already using Bing, but they are still talking about 'Googling',” he says.

David Fraser, Blue Label Telecoms CTO, expects the term “Bing” to become synonymous with mobile search.

“Since the launch of OneApp, we have seen tremendous uptake with more than 90% of people landing on our launch page signing up for it,” he says.

Microsoft has a 12% stake in Blue Label Telecoms, and Fraser says this allows the two to work closely together to develop the mobile market to provide increased functionality and Internet access at the least cost for users in emerging markets.

Fraser says access to applications such as Facebook and Twitter are the “hook and anchor” that draw users to OneApp, and from there they expand their activities into search and other applications.

“Within the next four to six weeks, we will be releasing a host of other applications that will just add to the environment,” he says.

Google's local office has said in the past that it will focus on the mobile search market. Country manager Stephen Newton has said Google's Android mobile phone operating system will be supported by an applications store here.