Google Serious about Competing In Wireless Market
David Curry | | Feb 11, 2015 06:30 AM EST |
Google is preparing to launch a multi-network MNVO (mobile virtual network operator) in the U.S., focused on offering high-speed Wi-Fi and 4G LTE through public Wi-Fi and piggybacking T-Mobile and Sprint's network.
The project has been in the works for a few years, ever since Google launched its first Fiber service in Kansas City in 2011. The search provider wants fewer data caps and more people online and believes it's the only company capable of offering that service.
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Google will apparently kick-off the wireless service at an operating loss, relying heavily on quick adoption to supplement the investment. If more users go online, that technically could translate into more people using Google apps, which in turn translates into more Google ad views.
This trickle down formula allows Google to offer highly competitive wireless and broadband to customers. On the other hand, Comcast, AT&T and Time Warner Cable all want to hit the highest possible profit margins to maintain their business.
Google is also banking on the Federal Communications Commission's new net neutrality bill -- which reclassifies both broadband and wireless under Title II 'common carrier' -- to succeed. The approval will allow Google to use the pipes and towers normal carriers and internet providers use without the additional cost.
It's a rather big revolution if Google manages to pull it off. But as we've seen with previous Google projects, Google seems to give up on the entire thing once it runs out of momentum.
When it comes to something as big as the broadband and wireless industry in the U.S., Google can't simply give up if AT&T, Comcast and Verizon manage to keep most of their customers.
Google Fiber recently announced its entry into four new cities followed by a lot more in 2015 as part of a new #FiberIsComing project. This does show some hope for Google's long-term goals with wireless, considering it's been working on Fiber for four years with minimal market share in the U.S.
TagsT-Mobile, Sprint, Google Fiber, public Wi-Fi, U.S. telecoms
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