The move expands Yahoo!'s partnership with Telefonica's global presence.
Since 2007, Yahoo! has provided mobile search Telefonica's portals in Latin America, the UK and Ireland. Now, they will provide mobile search for the telco in Spain.
Yahoo! will also provide search advertising as part of the deal.
Yahoo! has over 80 mobile partnerships with carriers and device manufacturers. Another major partnership they have in Europe is with 02 in Germany. That partnership was launched in November 2009.