google-privacy-policy-services

AH Primetime: Should the U.S. Carriers Fear Google?

April 5, 2014 - Written By Cory McNutt

 

Carrier Collage

Google has a rather short, sweet and direct motto that has often been shorten even further to -‘ Don’t be Evil’, however, there is a little more to it than that and I have the full motto listed below:

“Do the right thing; don’t be evil – Honesty and integrity in all we do – Our business practices are beyond reproach – We make money by doing good things”  I think they should also add (from Voltaire, not Spiderman) – ‘With great power comes great responsibility.’

I guess this is supposed to make us feel better about having Google ‘hovering’ around just about everything we do on the internet or with a mobile device…after all, evil is always in the eyes of the beholder, or so we are told.  The problem with the powerful technology we are seeing today is that it can be used for both good and evil.  Just take a look at Google Glass – here is a product that can be used for miraculous purposes in the healthcare industry, for law enforcement and in special needs areas, but can also be very easily manipulated to invade someone’s privacy. Sometimes evil is a by-product of something good and useful – for instance, a smartphone is a useful and innocent enough device, but people who talk and text while they drive have caused many accidents and some even resulting in death. What we do with this technology many times determines the inherit ‘evil.’

But advertising has always been Google’s main business and they are very good at it – last quarter’s net income was about $3.4 billion on revenues totaling $16.9 billion.  With money coming in at that rate, Google can afford to indulge in cars that drive themselves, robots, and to practically give away Google Fiber access in the few cities they have blessed with this option.  Google is not happy with the current technology that cable and wireless providers are selling to their customers – it is very slow and expensive, and Google knows it can do a better job.  When Google puts its collective minds together, there is not much they cannot do with their wealth of dedicated employees and…their wealth of wealth – cash!

If you think T-Mobile can ‘shake things up,’ just wait and see what Google is capable of doing if they decide to enter the wireless business – they will spend huge amounts of money for a long-term gain, even if it appears they will lose money in the short-term.  Take Google Fiber for instance; according our sources, Google has spent almost $100 million to roll out Google Fiber in Kansas City alone.  A recent estimate claims it will cost Google about $11 billion to cover only 20-percent of the U.S. homes with its broadband services.

This is great for the consumers as Google gives them 5Mbps free each month or 1Gbps for only $70 per month.  This may seem ludicrous to some, but with cheaper, faster service consumers will spend more time on the internet accessing Google’s various services.  The few cities Google Fiber has already been implemented forced the other cable companies to drop their prices big time – the competition is great for the consumers in those areas.

A report just issued on Thursday suggests that Google is already actively working on launching its own wireless network, although there is no concrete proof at this time – but why not?  Rumors have Google in talks with Verizon and Sprint regarding an MVNO arrangement allowing Google a quick way to cover the country from day one with the least amount of investment.  Other arrangements point to Google talking to Dish about a joint wireless service.

What we read in Thursday’s report from The Information poses a very interesting possibility – Google may use its Fiber Wi-Fi hotspots to support its wireless services and for data connectivity for VoIP calling.  Two year old rumors suggested that Google’s wireless service may be a data-only for voice calls and texting.  Google has many of the pieces of their puzzle already in place.  Republic wireless is a good example of what Google may be trying to accomplish – relying of both Wi-Fi networks and cellular networks to provide their customers their total services at a lower cost.

Would the established carriers like Verizon ever entertain the idea of ‘helping’ Google by allowing them to piggy-back their established networks in a MVNO arrangement?  Maybe in exchange Google could allow Verizon access to their Fiber network, once established, as a ‘payback’ for their allowing Google use their established towers.  One thing is for sure, the big carriers should keep a close eye on Google should they decided to venture into the mobile wireless business.  If Google decides to go through with their own network, offering cut-throat pricing, the major carriers would have no choice but to lower prices – it maybe in Verizon’s best interest to work with Google now, rather than against them later.

Google, like all companies, would like to control it all – the OS on our smartphones, tablets, notebooks, the many services they offer, and even the networks we use them on…and as long as they ‘do no evil’ we will welcome them with open arms if the price is right.  Let us know on our Google+ Page if you would like to see Google provide internet and mobile wireless into your home and on your mobile devices.