Search giant, Google, has daring plans to infiltrate the competitive wireless cellphone service market
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The wireless phone game may soon be changing up. Currently there are four major names competing for customers, AT&T, Verizon, Sprint and T-Mobile. However, Google reportedly has plans to enter the business of cellular service.
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Catholic Online (https://www.catholic.org)
1/23/2015 (9 years ago)
Published in Technology
Keywords: Google, cellphone, wireless, T-Mobile, Sprint, ATT, Verizon, cellphone service
LOS ANGELES, CA (Catholic Online) - It was seems like the perfect idea, Google will start selling cellphone service along with its Android phones, according to CNN Money.
"The search giant already makes the most-used mobile software on the planet, it designs and sells phones online, and it has become an Internet service provider with its Google Fiber initiative. It even has its own VoIP phone service called Google Voice, which allows people to get a Google phone number and call people through Gmail or Hangouts over Wi-Fi," explained CNN Money.
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The final step for Google is to join an already established nationwide network. Building their own cell towers and creating their own wireless network would cost them tens of billions of dollars.
According to reports, Google will carry its service through Sprint and T-Mobile's networks. Google is expected to pay the carriers two dollars per gigabyte, according to Kevin Smithen, Macquarie Securites analyst. This will allow Google to present a cheaper alternative to cellphone service to consumers.
Both T-Mobile and Sprint are remaining cautious on this game-changing deal. Getting in on an already very competitive field is something edgy.
Smithen estimates in 2018, Google will be paying Spring $750 million and T-Mobile $250 million for its service.
With Google starting their own cellphone service, consumers will be able to purchase Google's phones and use them directly with Google, which is something Apple does not have. Apple's "control over the iPhone stopped at the wireless carrier, Google would be far more empowered," according to Washington Post.
As promising as entering the cellphone service business looks for the search giant, there are posing problems.
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"When service inevitably goes down or connections fail, customers will blame Google - not Sprint or T-Mobile - for the disruptions," stated CNN Money.
Google declined to comment to news sources on the topic.
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