Yahoo!, T-Mobile in Search Agreement

Yahoo!(YHOO Quote) will be the default search provider for T-Mobile devices under an expanded agreement.

Yahoo!'s oneSearch will power mobile Internet searches made through T-Mobile's new web2go service, the companies said Thursday. The Internet company also said it will deliver mobile sponsored search results and in some cases display advertising within the search results presented through web2go.

T-Mobile is a subsidiary of Germany's Deutsche Telekom(DTE Quote).

Yahoo! announced earlier this year a partnership to provide mobile search and advertising for T-Mobile international across 10 European countries.

On Wednesday, Microsoft(symbol Quote) said it is still interested in some sort of Web search deal with Yahoo! but is no longer interested in buying all of the company.