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Vodafone and Telefonica invest in mobile ad company

Mobile telephony arch-competitors (opens in new tab) Vodafone and Telefonica have purchased minority stakes in a mobile advertising company called Amobee.

The financial terms of the transaction have not been disclosed yet.

The move highlights (opens in new tab) the growing unease which is spreading unto mobile phone companies that their content partners (Google, AOL, Microsoft or Yahoo) might be taking much needed advertising revenue from them.

Research Group Informa, said that the mobile advertising market would be worth around USD 11 bn by 2011, a five fold increase from current conditions.

Headquartered in San Fransicso but nurtured in Israel, Amobee presents itself as the first company to deliver a unified, telco-grade system for funding mobile content and communications through advertising revenues.

Its CEO, Zohar Levkovitz, believes that mobile operators should control their own destiny rather than be dictated on others (read Yahoo and the likes) terms and conditions.

Patrick Parodi, chief marketing officer of Amobee, believes that there are fortunes to be made by trying to monetise the UK and US SMS traffic, which alone, are apparently larger than all the traffic to Google Worldwide.

Désiré Athow

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.