This post is further comment on Greg Sterling's previous note:

Last week, Wall Street Journal reporter Amol Sharma reported that search giant Google was in serious talks with Verizon Wireless to establish a relationship "which would make Google the default search provider on Verizon devices and give it a share of ad revenue". According to Sharma, based on talks with an executive close to the deal, the arrangement "is aimed at dramatically simplifying what is now a confusing set of search options for cellphone users." In other words, establishing a deeper relationship with Google is part of Verizon Wireless' competitive response to AT&T Mobility's iPhone-based offerings in association with Apple. According to the story, this represents Verizon's rejection of a role for Microsoft and its advertising platform as the default search on Verizon's devices. It should also be a boon for Medio Systems, which will continue to operate an "all-in-one" aggregater presenter of mobile content from a multiplicity of Web service providers.

In a slew of other coverage, discussion surrounded the thaw in a chilly relationship between Google, playing its role as chief proponent of open networks for wireless application and service providers and Verizon as adherent to the transformative model for licensees of wireless spectrum. Frankly, this appears to be more ado about a marketing agreement than is warranted. If Verizon is looking for Google "exclusive" as a source of product differentiation, that's not happening. Steve Jobs and Apple were smart enough to roll out the iPhone with access to the most popular web applications "on the glass". That included YouTube, Maps (based on Google Maps), iTunes, Weather, and its own AppsStore. Google was also embedded as the default search engine in the iPhone's rendition of the Safari Web browser. I'm not privy to what the considerations are in terms of division of advertising revenues (among Apple, AT&T Mobility and Google) for such preferential treatment of Google in the iPhone click-stream, but it's already working for all parties involved.

As for the implications for Local Mobile Search, we've already catalogued a few dozen iPhone apps  that take advantage of geo-location, social networking, reviews and the like. For the most useful, it is the creative marriage of geopositioning, the gravitometer and (thankfully) access to the faster Wi-Fi links by the approved third-party application vendors that make for the best user experience. A Verzon Wireless/Google joint offering doesn't get you there, yet.