Google to become a wireless carrier?
*Intentionally misplaced to raise thread awareness and open the discussion.*
Excerpts from the 3 sources at the bottom.
Google has assembled all the pieces it needs to be a mobile provider like Verizon, AT&T or Sprint.
If you look at Google Inc.’s (GOOG 598.86, -2.14, -0.36%) actions over the last few years, it’s more than apparent that it can go into the carrier business in one way or another. Let’s look at the evidence:
1. WiFi initiative. First of all, the search giant already has toyed with modern networking as it established WiFi networks around California to play with connectivity. Looking back on this initiative, it can now be seen as an early test of an idea, or part of a bigger idea.
2. Fiber initiative. Then Google began to fool around with the notion of fiber with an eye on installing fiber or lighting up dark fiber. Cities were encouraged to take part in the great experiment with a national competition for getting free Google fiber.
3. Google Voice rollout. The company bought Grand Central and established Google Voice as a phone alternative. In the process, it took over some phone exchanges to provide users with real phone numbers.
4. GoogleTalk. This is on the heels of the G-talk initiative that began a few years back, where the company developed a Skype-like phone client for more connectivity.
5. Phone operating systems and phones. We cannot leave out the Android OS, which is licensed to everyone and the fact that Google itself has developed a mobile device, the Nexus.
6. Networking guru. Finally, Google has hired the network-development superstar Milo Medin as a vice president to oversee much of this.
Of course, these threats will be used as the rationale in the antitrust case that will surely evolve around the scheme that has to come to an end point soon, with Google buying out one of the bigger networks. Sprint Nextel Corp. (S 4.19, +0.03, +0.72%) comes to mind.
Sprint’s market cap is just more than $12 billion. Google can easily afford to buy the company at a premium and establish itself as a highly integrated, triple-play telecom provider offering just about everything.
This ploy explains away a lot of what Google has been doing on the side over the past few years. Buying Sprint would close the book. Can you hear me now?
Would Google really be willing to give up its strong relationships with the carriers, most notably Verizon -- the largest network -- to go head-to-head with them in the wireless space?
We asked. Google declined to comment.
It's not likely in the immediate future. Google's Android is the hottest item in the mobile market, and the company relies on carriers to adopt its software and drive customers to its search site.
But it's a real possibility down the road. The Federal Communications Commission recently failed to enact strong Net neutrality rules for the wireless community. That leaves open the option for carriers to restrict their subscribers' access to some of Google's offerings.
Google warned of that risk in a recent SEC filing: "Some of these providers have stated that they may take measures that could degrade, disrupt, or increase the cost of user access to certain of our products by restricting or prohibiting the use of their infrastructure."
Google could compete head-on with Verizon, AT&T - Dec. 30, 2010
Faster Forward - Will Google compete with Verizon, AT&T in mobile market?
Google to Sprint into the carrier business John Dvorak's Second Opinion - MarketWatch