Yahoo to collaborate with Google on Android?

The global mobile phone advertising market will grow GBP 8 billion within 3 years, according to Research firm EMarketer Inc.

This might be the primary reason, according to rumours, why Yahoo may decide to partner with long time rival Google in a bid to reach more mobile phone users.

Internet giant Google said at the CES show in Las Vegas that it will boost its presence online and create a mobile ecosystem that can compete with Google by attracting developers, publishers and advertisers.

Unlike Google which is firmly betting on its Android platform as a way to make mobile internet more user and developer friendly and Microsoft which already has millions of Windows Mobile devices on the market, Yahoo is focused on developing a better on-device mobile portal, according to Tony Cripps of Ovum, an analyst firm.

The company has also opened up Yahoo Go, its mobile application, to third parties like MTV, eBay and Myspace and has encouraged them to develop content/widgets around it.

Yang also demonstrated an in-house version of its Yahoo Mail service which would encapsulate some social networking features.

The Globe and Mail reports that Yahoo "expects the market for mobile operating systems to become increasingly commoditized as more and more players enter the market."

Yahoo is actually vying to become a "Google for mobile devices", a point of entry that gives the user access to resources almost instantly, something that Yahoo did well before Google came and change everything.

Whether Google and Microsoft will sit still and allow Yahoo to do so is highly unlikely and it will be gripping to observe how Google and Microsoft will deal with Yahoo's surge.