Cellular networks are only just starting to accept ads on their wireless information and entertainment services. This year, both Sprint Nextel and Verizon Wireless began running banners on their Web
services pages. Sprint is also testing video ads, and is expected to make an announcement about its ads program in the coming weeks. Verizon Wireless is also reported to be making inroads into
cellular advertising. Today, Yahoo and go2 Directory Systems are set to announce a deal that will put Yahoo-sponsored listings on go2's local-search Web directory--a service carried by Verizon, Sprint
and Cingular Wireless. Right now, most wireless Internet sites don't include ads. While some media companies have ads on their own sites, most cell phone users limit their browsing to sites hosted by
cell phone operators. Operators have been reluctant to post ads on users' cell phones primarily because the mobile phone is viewed as a highly personal item. But as users become accustomed to Web
advertising, carriers are starting to believe that Internet use on the cell phone is fair game. Ad revenue would offset the steadily declining funds from voice calls, the carriers' core but dying
business. It would also meet the demand from content providers to place ads on sports, news, video and other entertainment content appearing on cell phones.
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