Google’s one chance for Android - become a wireless carrier

Source: http://lifeandmoneytoday.com/2008/07/02/googles-on...

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Filed under: Products and services, Launches, Google (GOOG)

When Google, Inc. (NASDAQ: GOOG) purchased wireless software development company Android years ago, its founder asked Google’s co-founder Larry Page, “Is this interesting to Google?” It sure turned out to be, even though the mobile phone operating system environment was announced nearly a year ago and nothing concrete has shipped in a customer device yet. My bet is that Google isn’t delaying development to fine-tune its software — it’s had years to do that and the money to boot.

The problem is the wireless environment in the U.S., for starters. The competitive landscape is so tightly controlled that Google’s mantra of “open access” just won’t sit well with wireless carriers used to telling customers what they have the ability to and can’t do with their phones. If you think U.S. consumers have control over their wireless lifestyles, a swift trip to Europe will dispel that notion pretty fast.

If Google really wants to make Android the ubiquitous, free and open mobile operating system it wants it to be, what are the alternatives to having partnerships with mobile carriers who will, of course, be afraid of Google? Google has bid on wireless airwaves before (only to have the goal of allowing open devices accessible to shut networks), but this time, I see it going down the mobile virtual network operator route, plain and easy. Although the MVNO model has largely failed in the U.S., Google doesn’t have a national wireless network to operate. But with its huge pockets, it sure can buy wholesale from the existing carriers and place its Android customers with service — and then, give them anything they want. Like, mobile search results with ads next to them.

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