http://www.bbc.com/news/technology-32422193
This article describes Google launching a mobile phone network through carriers Sprint and T-Mobile, two of the cheaper operators in the United States. It notes that Google's entry into this market will start as a limited pilot to Nexus 6 owners, and will be reliant on competitors' network bandwidth rentals, which may limit its viability as an independent service. The network will also provide Wi-Fi data sharing to limit data usage throughout a Google "wireless network".
Overall, this development is not exactly an unexpected route for Google to take, though much speculation has been placed on Apple's possible entry into this market. This is similar to its Google Fiber venture that has been widely credited for forcing large consumer internet service providers like Comcast to reduce their price per megabyte per second provided, serving largely as a market disruptor to a heavily concentrated market. This will likely have similar impact, forcing mobile carriers to drop relative prices, if they take the same strategy. While it's doubtful that Google will be a serious threat to the Big Four wireless carriers, their market disruption may shock enough of the market to produce positive gains for consumers overall.
3 comments:
This doesn't seem to be a surprise for Google. At this time in the market, companies like this can enter into new products and services because they have such a strong association with their brand name. Similar to Apple's watch.
This action is consistent with Google's entrance into many markets. I feel that they have a better chance to enter the wireless market due to their brand economic moat. Additionally, they have shown a desire to integrate their products across people's lives, much like Apple. I think Abby brings up valid points.
This is innovative and exciting! If the Fi network brings down the cost of costly data packages and have data refund this would be amazing! A small goggle sim card can increase affordability and help people with lower incomes! I think this is great and I am excited to see how it plays out.
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