American consumers may soon be able to buy Google-branded wireless data service, but unlike its Google Fiber broadband business, it won’t be building out a new network for this product. Instead, according to one new report, Google has made deals with T-Mobile and Sprint to resell access to their wireless networks.
There have been rumblings of Google getting into the wireless business for nearly two years, but the Wall Street Journal claims it’s now more than just rumor, with the Internet titan actually working with the nation’s third- and fourth-largest wireless providers.
Much like the earlier reports, the Journal piece suggests that Google may initially only offer its wireless access in the few metro areas where it currently sells Google Fiber, and possibly only to subscribers of that broadband and pay-TV service.
The most likely notion behind Google’s wireless plan is to be able to offer Fiber users a seamless transition from home WiFi to a wireless network without having to switch to a new provider.
Partnering with Sprint and T-Mobile would make sense, as both are fighting to remain competitive with the much larger Verizon and AT&T. Both companies should also currently have network capacity that would allow Google to pile on more users.
But according to the Journal, Sprint has a clause in its Google contract that could trigger a renegotiation if Google’s user base grows beyond a certain point.
Could Google be stirring up a hornet’s nest by getting into the wireless business? Its Android operating system runs on the majority of U.S. smartphones, but many of those devices are sold and promoted by AT&T and Verizon. If Google has expansive goals for its wireless future, it’s possible those providers may cool on pushing Android phones and opt to throw their weight behind Apple’s iPhone and maybe even Windows-based devices.
by Chris Morran via Consumerist