Google will partner with both T-Mobile US and Sprint as it launches its mobile virtual network operator service in the coming weeks, according to The Wall Street Journal. The software giant is reportedly planning to use both carrier networks, as well as Wi-Fi, to offer wireless service under the Google brand.
Moving users to Wi-Fi is a key goal mentioned by Google’s Sundar Pichai when he discussed Google’s wireless plans at Mobile World Congress. Software that facilitates that move is giving carriers the opportunity to maintain a good user experience even when the cellular network is highly congested. For Google, more users staying connected means more traffic on its sites and search results.
Switching users between Wi-Fi and LTE is complicated, however, and so is moving voice calls from Sprint’s CDMA network to T-Mobile US’ GSM network. Google is not expected to ask smartphonemakers for phones that can do all this, at least not right away. The company is expected to launch its wireless service on its own Nexus 6 smartphone.
Just one phone?
If Google is focused exclusively on the Nexus 6 for its wireless launch, the company will need to offer a service attractive enough to encourage customers to change phones. Google may end up subsidizing not only the phones but also the service itself. Free voice calls over Wi-Fi could be a key part of Google’s offer.
The Nexus 6 is already on track to support voice-over-Wi-Fi and it seems likely that Google will rely on Wi-Fi for some or all voice calls, eliminating the need to move users between Sprint’s CDMA network and T-Mobile US’ GSM network and reducing Google’s reliance on its carrier partners.
Providers of network hardware and software have been eyeing Google’s MVNO plans for some time, particularly as it relates to the potential for more voice-over-Wi-Fi. Interop Technologies referenced Google and voice-over-Wi-Fi last week when announcing its selection of Taqua’s core and client solutions for voice-over-Wi-Fi.
“The voice-over-Wi-Fi movement is happening right now,” said Interop CEO John Dwyer. “With the recent launches in the U.S. from T-Mobile, Sprint, Cablevision and Google, Wi-Fi calling is more than a background feature; it is a key offering for operators.”
Google’s game plan
Google said this week that it does not want to become a full-fledged network operator, and instead wants to use its wireless offerings to raise the bar for mainstream operators. This is consistent with the company’s demonstrated strategy in other areas. The Nexus smartphones have encouraged competitors to offer more unlocked versions of their devices, and Google Fiber has motivated broadband providers to invest in more fiber connections to stay competitive.
Even without becoming a large-scale provider, Google has the potential to disrupt the wireless service market. With mobile penetration approaching 100% in the United States, Google’s customers will come from established carriers. And if Google offers services that encourage those customers to use their devices more heavily, that will impact the networks of its carrier partners.
“If Google got a lot more serious in the wireless arena, with advertising behind it … that would drive more usage and for Google’s model more clicks, which is what they want at the heart of it,” said Wells Fargo Securities analyst Jennifer Fritzsche, speaking on CNBC.
The search engine giant will probably try to drive those clicks through existing wireless networks rather than building its own, but time will tell. In the short-term, look for a launch of Google’s first wireless service offering this spring.
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