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11/04/2024 10:29:21 pm

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Google Planning No Roaming Charges for Wireless Service

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(Photo : Reuters) Google is planning to launch an MVNO with no roaming charges.

Google is planning to shake up the wireless carrier market in the next few months with the launch of a low cost mobile virtual network operator to compete with AT&T and Verizon Wireless.

At home, Google's wireless service will provide low cost calls, texts and data on the Sprint and T-Mobile network. Overseas, it will also have no roaming charges due to a partnership between Google and Hong Kong conglomerate, Hutchison Whampoa.

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Hutchison Whampoa is the owner of Three, the wireless carrier that recently acquired O2 in the UK. It also owns wireless networks in Italy, Ireland, and offers no roaming charges throughout Europe.

Google has found common ground with Hutchison Whampoa over the no roaming charges deal. The report from The Telegraph didn't disclose the cost of the deal between the two companies.

It's still not clear what advantages other than price Google will offer on its MVNO, but having no roaming charges could be lucrative to Americans wanting to travel. The Nexus 6 may be the only device to launch with Google's own carrier support.

Google has already shaken the broadband industry with Google Fiber. In Atlanta, Georgia, Comcast is now planning 2 Gbps internet service; in Austin, Texas, AT&T is laying 1 Gbps internet in high-end developments.

If it can replicate its success in the U.S. wireless carrier market, Google could stop Verizon Wireless and AT&T from hitting these high profit margins. T-Mobile USA has already been trying to win customers over with cheaper contracts throughout 2014, with varied success.

The difference between Google and T-Mobile USA is Google has $60 billion in the bank, a stranglehold of advertising and search, and the ability to be in the room with White House officials every day of the week. Put that all together and we have a strong challenger against Verizon Wireless and AT&T.

Whether Google will invest fully in the wireless carrier service is another matter, however. The lease of networks from T-Mobile USA and Sprint makes it look like Google is taking it slow instead of investing in infrastructure like it has for Google Fiber.

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