Google is becoming a wireless carrier

23 Jan 2015 | Author: | No comments yet »

Here’s why Google Inc is getting into the wireless business.

Google Inc. is getting into the business of selling wireless service to customers after reaching an agreement to use Sprint Corp.’s network, according to a person with knowledge of the matter. Masayoshi Son, the president of SoftBank Corp. who bought Sprint in 2013, was integral in facilitating the talks between Sprint and Google, said another person, who asked not to be named because the discussions were private. Google has been wrestling with the mobile transition, as users gravitate away from search ads online on personal computers and instead use smartphones and tablets more. Google’s mobile ad business has been growing quickly, though prices for those ads cost less than ones on PCs, meaning Google has to quickly grow the volume of mobile ad sales to make up for lower prices on each ad.

Offering wireless service would require Google to manage hardware sales to consumers and compete with the carriers that currently sell and promote Google’s Android-based mobile phones. It wouldn’t be the first time Google competed with those service providers — the Mountain View, California-based company has already introduced broadband Internet service in a handful of U.S. cities, and has said it’s looking to expand further.

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