Sunday, 1 February 2015

Google Reportedly Wants To Sell Wireless Service


Google
Soon the day will come when people will buy Android smartphone not from T-Mobile, Sprint, AT&T or Verizon, but only with Google Wireless. As we all know that Google is going to start cell phone service with Android phones, as multiple news portals are reporting same. From past few years Google has been trying to assemble all the pieces, which is necessary to become the mobile provider.

On the records this search giant has already made the maximum number of used software for mobile platform, it designs as well as sells mobile phones online and now it become a Internet service provider (ISP) with its Google Fiber network. Apart from all this it has its own VoIP phone service known as Google Voice that allows users to get a Google phone number for making the call through Hangouts or Gmail over Wi-Fi.

The missing links between all these services are the cell phone towers, and soon you will the Google’s cell phone towers in all over the nation. It is better to establish a wireless network rather than spending billions of dollars, and as per reports Google will carry its all services over T-Mobile's (TMUS) and Sprint (S) networks, but Google officials declined the comments. Google is planning to pay these carriers in $2 only, as per the statement of Macquarie Securities, who is analyst in Kevin Smithen. It means in near future Google is going to provide very affordable services and it can be worry situation for Verizon and AT&T.

We all know that Google is already in competitive field which and now Google is going to land in between the price war of major players. In these price wars big carriers are very happy while small carriers such as; T-Mobile and Sprint are helping the Google to recover their losses. Sprint and T-Mobile are keeping the cautious about this deal and Sprint has worked in usage cap into its contract with major search engine Google, which will allow the wireless companies to renegotiates its deal, if Google is going to signs up for ton of customers, as per the WSJ (Wall Street Journal).

According to Smithen, Google will pay $750 million to Sprint, whereas; $250 million to T-Mobile, which means if Google will choose to break even, so Google have to sell more than $1 billion wireless services in next three years. But if you are thinking that Google will surprise top four wireless carriers, so chances are nil, but existing carriers didn’t want to make the wireless service as commodity.

In present Google is making huge money from Android platform by licensing the different software’s to smartphone makers by driving traffic and usages on their apps and search service. if Google will be able to implement its own strategy successfully, so it will be on the way for Apple to sell its own wireless services with iPhones. But we all know that there are a lot of risk is associated with wireless carriers, if the service will inevitably go down or connections fail so customers will blame Google not T-Mobile or Sprint for the disruptions.

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