Google Wants To Be Your Cellphone Carrier

Discussion in 'Mobile & Wireless' started by Wolf, Jan 22, 2015.

  1. Wolf

    Wolf The Lone Wolf

    Google wants to be your phone company - Yahoo Finance

    Google (GOOGL) is getting into the cellphone business.

    Various reports say the company is teaming up with Sprint (S) and T-Mobile (TMUS) to offer wireless service directly to customers. The “piggy-back” arrangement would have Google reselling service using the networks of the two other providers, possibly beginning later this year.

    Yahoo Finance Columnist Rick Newman says this clearly fits into Google’s overall marketing strategy.

    “Google is doing a lot of things to make sure that they are basically top of mind with consumers in everything consumers do,” he notes. “They want to get into the car, they want to get into your home, they want to be an integral part of everything you do.”

    Yahoo Finance Senior Columnist Michael Santoli agrees.

    “Google aspires to be the central repository of everybody’s information--Gmail, Google docs, Chromebook, all these things,” Santoli says. “They basically say you can just walk around wherever you are and plug into Google for whatever you need.”

    The reports say the project, codenamed “Nova,” will allow Google to get a foothold in the industry without having to invest in pricey infrastructure. Newman feels that's key.

    “It's important to note Google is not going to be building its own cellphone towers,” he adds. “I think shareholders would have a heart attack if Google was actually starting their own business in that regard because that’s very expensive and low margin.”

    Newman isn’t sure if cellphone users will benefit from Google getting into the wireless service arena.

    “It’s not clear to me what’s in this for consumers,” he says. “There’s no reason to necessarily think this will spark a price war unless Google is willing to resell that service at a loss or a very low margin. So we’re not getting new cellular service here, we’re just getting reselling.”

    However, Newman believes loyalty could play a factor in boosting demand.

    “It’s branded selling under Google,” he points out. “So there probably will be some people-- Google’s reasoning-- who like the Google portfolio of services so they’ll add cellphone service to it.”

    Newman notes that Google has no problem venturing into uncharted waters…and they can afford it.

    “They try a lot of things,” he notes. “They have enough money to experiment if you will and back away if it doesn’t pan out.”

    However, Newman isn’t convinced this latest effort will succeed.

    “Not everything Google touches turns to gold,” he says. “The classic example of that is Google Glass, which basically is a flop. So I don’t know if people are going to jump on this or not.”
  2. semipenguin

    semipenguin Cheeseburger Connoisseur

    They had me up until they said Sprint.

    Sprint sucks. I'll never have anything to do with them.
  3. IdRatherBeSkiing

    IdRatherBeSkiing Sherbert is not and never will be ice cream

    So you can hook your iPhone up though google now? Cool.
  4. memebag

    memebag Top Brass, ADVP

    Google has always been open to playing with Apple products. I run a bunch of Google apps on iOS. Apple, on the other hand, offers only the Beats music app on Android, and that was developed before Apple bought them.

    It's the reverse that would be surprising.
  5. Ehilbert1

    Ehilbert1 Ooh-Rah!!!!

    From all the things I have read Google fiber their cable and Internet service is supposed to be great.

    T mobile service here in Columbus is excellent. If Google had did the T mobile network here I would consider leaving Verizon.

    Sent from my Galaxy Note 4
  6. semipenguin

    semipenguin Cheeseburger Connoisseur

    I left Sprint & came to Verizon in September. Data is far better with Verizon than Sprint.
    Ehilbert1 likes this.
  7. IdRatherBeSkiing

    IdRatherBeSkiing Sherbert is not and never will be ice cream

    But Verison and AT&T are big boys. They have no incentive to lease bandwidth to Google.
  8. kingchuck69

    kingchuck69 Joker! Joker! Joker!

    I'm with CREDO Mobile, which uses the (sorry, Semi) Sprint Network. They're a non-profit company known for their progressive-liberal values. I used to have T-Mobile, but when I listened to internet radio on the road, it only worked in bigger towns. Sprint is way better, IMO.

    True, Google is quite a liberal company, too, but I'll pass. :)
    semipenguin likes this.
  9. Wolf

    Wolf The Lone Wolf

    Since Google wants to add a cellphone company under there name now, why don't they just buyout Sprint or T-Mobile. Hell, Google is worth double amount of those companies combined.
    Last edited: Jan 24, 2015
    Ehilbert1 likes this.
  10. memebag

    memebag Top Brass, ADVP

    Google has enough cash on hand to buy Sprint and T-Mobile, but it would just about wipe out their savings. The stock holders wouldn't like that, and then there's the regulatory issue of merging two competitors into one.

    I'm sure if it made financial sense, Google would be buying them out.
    semipenguin and Wolf like this.
  11. Wolf

    Wolf The Lone Wolf

    It could wipe out their savings, but I believe they would make up their money in no time. I listen to some tech podcast and I hear once in a while that google buys quite a few companies every now and then for tons of millions of dollars. But again this would be billions and google last year spent $8.8 billions for a 60 year lease for some NASA hangers and airway in San Francisco.

    Google signs 60-year lease on NASA airfield and hangars | The Verge

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