Google’s Wireless Service To Use Sprint and T-Mobile USA But What Of AT&T …

26 Jan 2015 | Author: | No comments yet »

Google wireless service could disrupt carriers.

T-Mobile is the fourth largest wireless provider in the U.S. with over 53 million subscribers. To compete against larger rivals like AT&T and Verizon Wireless, T-Mobile CEO John Legere came up with a series of unique plans for customers as part of a campaign called Uncarrier.

— Internet users from San Jose to Kansas City have been clamoring for Google to lay down its long-awaited fiber-optic network to compete with Comcast and AT&T in speeding up Web and television access. The Uncarrier plans include bundles with free international roaming, 200MB of free tablet data, phone upgrades twice per year, ETF payoffs and a “Data Stash” feature that let users carry over unused high-speed data usage for up to one year.

Reports that Google plans to sell its own mobile-phone plans this year sent a warning to the telecom industry and were met with enthusiasm from consumers, officials and analysts hoping the move will push down prices and inspire better service. Google is making unprecedented steps into the telecom game, indicating the tech company wants to be far more than just your search engine or e-mail provider. For Google, this means that they can have a better handle over the service that customers receive right from picking the device to using it at the sharp end. Google’s push to offer faster, cheaper wireless service plays into the company’s goal to get Internet access to more people, who then will visit more websites, provide more information about themselves and see more Google ads, generating more revenue.

Mountain View, Calif.-based Google has inked deals with Sprint and T-Mobile to become a wireless carrier, according to technology website The Information citing unnamed sources. From the carriers’ perspective, they are joined by a large partner with influence right across the board with the device manufacturers to end consumers. But it does mean that Google will use existing cell towers to sell wireless plans to consumers — a move that could uproot the already competitive wireless provider field. It seems Sprint, at least, is looking for more customers. (Video viaThe Wall Street Journal) “Sprint executives are betting that the boost from an influx of new Google customers outweighs the risk that the Internet search giant will learn too much about the ins and outs of the wireless business.” Much like its Google Fiber broadband service, Nova seems intended to pressure the rest of the wireless industry into cutting its prices and improving its services. With wireless competitors such as T-Mobile who have shaken things up, with its “Un-carrier” service plans, Google’s plans of entering that market comes at a critical time, where consumers are tired of paying high fees while being tied into long-term contracts for cell phone service.

The company added 2.1 million net new connections, but their contract customer turnover rate increased to 1.14% — which generally stayed below 1% in the past. Firstly, from a pricing perspective; Google have significant financial clout and are likely to be able to offer more for less, although they will probably have arrangements in place that prevent them from undercutting their host networks by a massive amount.

Of the two giant wireless carriers Google apparently aims to disrupt, AT&T also declined to comment and one of Verizon’s top executives brushed aside any fears its shareholders might have about Google’s wireless ambitions. Shammo said that this is another example of Google “stirring the pot.” He compared Google’s potential wireless service to Google Fiber, meaning Google simply wanted to push for higher speeds in the competition rather than becoming a serious Internet service provider. Verizon’s chief financial officer, Fran Shammo, referred to the search-engine giant as “just another competitor” in an intense market during an earnings call Thursday. “If you look at Google, they have entered the fiber. Google’s aim is to become what is known as a mobile virtual network operator, or MVNO, reselling the services it buys from major carriers by offering its own Google-branded data or voice plans. “Resellers, or people leasing the network from carriers, have been around for 15 years,” Shammo told Verizon investors. “It’s a complex issue.

Google siding with the underdogs could be a “game-changer” in the long run, grabbing market share from the giants, Pacific Crest analysts Michael Bowen and Trevor Upton wrote in a note to investors. “Any time Google does something it rightly catches people’s attention because they can take big steps like this,” said Matt Wood, policy director at media-reform group Free Press. “But I wouldn’t overstate the importance of it. Sprint reportedly added a clause that calls for a renegotiation if the service volume gets too high (in other words, if more people start choosing Google over its services).

It hasn’t had to deal with these sort of tasks often, given most of its services are ad-supported and can be offered for free – not to mention shouldering the blame if any wireless coverage gets spotty or goes down. According to the Wall Street Journal, Google lobbied to free up a large amount of low-quality wireless spectrum that could connect people within short distances.

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