Google is attempting to enter the telecom market. The search engine company wants to become a data plan provider to boost mobile device connectivity rates in the U.S. By doing so, Google will indirectly influence more Internet users to click on ads and generate revenue for itself. Google’s breadth of operations is already huge, but offering data plans could catapult the company into a world of new opportunities and unparalleled growth.
Google will become a data provider for mobile devices
CBS News reported that Google will start selling data plans for smartphones and tablets in the U.S. By entering the telecom market, the technology company will have a hand in getting people online. More users online will mean more ad clicks, resulting in new revenues for the search engine company.
WIRED noted, however, that Google’s new wireless service will not operate on the same scale as larger providers such as Verizon and AT&T. Google’s service will be a simplified and new way for people to access the Internet using a smartphone, as well as make calls and send texts.
Sundar Pichai, senior vice president of products at Google, explained that the company is not looking to become a major provider.
“We don’t intend to be a network operator at scale,” said Pichai, according to CBS News. “Our goal here is to drive a set of innovations which we think the ecosystem should evolve and hopefully will get traction.”
This is not Google’s first foray into the Internet access business
According to CBS News, Google has already dabbled with providing access to the Internet. The search engine company sells “ultra-fast” fiber-optic Internet service in a number of cities across the U.S. The news source explained that Google wants to pressure broadband providers to lower their prices and improve services. Similarly to the data plan strategy, improving Internet connectivity on a large scale will indirectly result in more advertising revenue for Google down the road. The company may end up succeeding in its effort to improve rates and services if its own data plans end up offering consumers a valued service. Bill Menezes, an analyst at Gartner, explained that Google’s new direction will give a nice jolt to the technoloy industry.
“Any time there is a new entrant with the resources and imagination of Google, it most definitely could shake up the market,” said Gartner analyst Bill Menezes.
WIRED explained that Google can change the Internet. One of the things the company’s new data plans services aim to do is create a more seamless experience in Internet connectivity as devices move between cellular networks and WiFi connections. It is possible that data packets will be split between the two, ultimately creating a new kind of wireless network altogether. In the future, mobile devices may be able to go online independent of a fixed cellular or WiFi connection.
“We are thinking about how WiFi and cell networks work together and how to make that seamless,” Pinchai told Techcrunch, reported the media outlet.
Google may be in a race to provide the fastest connectivity
WIRED pointed out that Google and other technology companies are likely to want to partner with pCell – the creation of Silicon Valley inventor Steve Perlman. The news source explained that pCell provides cellular signals approximately 35 times faster than the fastest signals today. All that is needed is a mobile device and a SIM card. Analyst Richard Doherty commented that Google and other technology companies will probably want to partner with pCell and be the first to offer consumers “super-high-speed-wireless.”
“I expect the carriers would align with Steve before being bypassed by Google or Facebook,” said Doherty, according to WIRED. “That’s one of their worst nightmares.”
It remains to be seen how this situation will unfold, but in the meantime, Google will likely partner with a more well-established wireless provider. CBS News noted that Google’s wireless partner is not yet known, but there is a good chance it will either be Sprint or T-Mobile. Regardless of the partner, a new Internet seems to be on the way. As previously stated, improving Internet access will give Google a better chance at increasing its advertising revenue. The company is likely to make good money from selling its data plans as well. Is there anything Google can’t do?Back To Blog