BANGALORE, INDIA: Microsoft Corp., capitalizing on Google Inc.'s regulatory snarl, is working to steal a deal with Verizon Wireless away from its rival, the Wall Street Journal reported on Friday.

Microsoft has gotten the mobile carrier's attention by offering a sweeter deal to put its search service and related advertising on Verizon phones, the newspaper said.

Microsoft is also offering more generous revenue sharing and a guarantee of substantially higher payments to Verizon, say people familiar with the matter.

Google has been in discussions for months with Verizon to make its search engine the default on most Verizon phones, it said.

However, sources said that Verizon Wireless, a joint venture between Verizon Communications Inc and Vodafone Group Plc, is yet to make a final decision.