It appears that Google soon will launch a lower cost, metered wireless service. See http://www.wsj.com/articles/google-set-to-unveil-wireless-service-1429660082. The company has made an impact in data transmission infrastructure with Google Fiber, albeit only in the 8 metropolitan areas it now serves. See https://fiber.google.com/about/. Google may repeat its success on a slow and incremental basis.
Bear in
mind that Google Fiber offers facilities-based broadband competition. At least initially Google will package and
resale bulk wireless bandwidth from TMobile and Sprint. Additionally most consumers will have to
acquire one of the few handset types compatible with the service.
On the
other hand, Google has the patience and deep pockets needed to see this project
through. Google is not the first venture
to resale wireless, or to combine cellular and Wi-Fi access to the
Internet. However it has the buying
power and tolerance for financial losses sufficient to allow the venture to
acquire market share slowly.
Should
Google Wireless reach a critical mass, the impact will be huge. Consumers’ expectations could change in terms
of what a wireless service should offer and what it will cost. Currently consumers have to commit to data
plans that add significant blocks of capacity, but at rates considered quite
expensive relative to global averages. U.S. carriers can tout low data rates
only by spreading high monthly costs over similarly high data monthly allowances. Had AT&T gotten government authorization
to acquire TMobile, no carrier or reseller would have offered subscribers the
opportunity to carry forward unused capacity into the next month.
Google
Wireless will offer a metered, pay as you go a la carte opinion that appeals to
cost-conscious consumers. If Google gets
traction, expect more sponsored data plans to become available, provided the
FCC does not consider them a violation of network neutrality policies.
2 comments:
Rob, do you have an opinion on Republic Wireless, who pioneered the cellular/wi-fi hybrid service that this new Google project has adopted?
Google's announcement yesterday included a "request for invite" and they will select small numbers of people to be early users. I made the request but who knows if it will lead anywhere. I am also considering Republic Wireless. I decided to jump ship from the "Big Four" once and for all, at least in terms of contract plans.
I have now (finally) received an invitation to join Google Fi. Now I have to buy a new phone at full price, but there will still be savings in the long run as compared to the Big 4. Must now wait for the new phone to be delivered. Stay tuned....
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