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Updated from 2:03 p.m. EST
In a surprising setback, Google (GOOG Quote) has lost its first major battle in wireless.
A more determined Microsoft (MSFT Quote) has outbid Google for prime turf with telco giant Verizon Wireless, co-owned by Verizon (VZ Quote) and Vodafone (VOD Quote). Windows Live, not Google, will be the default search provider on Verizon phones for the next five years, Microsoft chief Steve Ballmer announced during a speech at the CES show in Las Vegas late Wednesday.
Google, which already has search deals with Sprint and T-Mobile, had been seen as the favorite in negotiations with Verizon. ...
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