PFi

AH Primetime: Google Is Trying To Shake A Stalled Wireless Service Market With Project Fi

May 7, 2015 - Written By Ricardo Trevizo

Google is a company that is no longer restricted by the internet, something that most companies with origins there are always bound to. The company behind the search engine has taken some risks and expanded beyond the web, as Google has started numerous projects ranging from self-driving cars to a mobile network. Project Fi is a relatively new hybrid network that is in the process of being released by Google. The network has proven how Google has enough power to change how major companies operate, even if they are found in a completely different area from Google. But, this power has led to some issues, especially with the European Union who accused Google of taking advantage of the market dominance it has.

With the launch of Google’s new network, Project Fi, the whole wireless service market has shaken, as Google defined the goal of Project Fi is not to make a lot of profit but to encourage every carrier and network provider to think of new ways to innovate and change what the industry currently has as a standard. The news of Google further expanding in more areas has raised some eyebrows as many believe these are more attempts at creating a completely monopolized market; Google claims it wants to spark competence between companies in what they believe are stalling industries. Are these really Google’s true intentions?

The wireless market is and has been for a long time now, mostly controlled by both AT&T and Verizon with Sprint and T-Mobile far behind in terms of customer subscriber base. The four major carriers in the nation have somehow settled on the position they have been occupying for years; Google is bound to change this, as it knows that innovation doesn’t come without a little competition. Something that has sparked a bit of discomfort and has created some doubts surrounding Google’s supposed intentions is the fact that Google is planning to charge a substantial amount of money for the new wireless service. A month of text and calls will cost $20 and each gigabyte of cellular data will be $10. Google has stated that you’ll only pay for what you use, so if you use up only 500MB of data, you’ll be paying $5.

Something to take into consideration with Project Fi, is that it aims to rely on both Wi-Fi and Mobile Networks, so you won’t have to worry about your data consumption that much. T-Mobile and Sprint are the carriers in charge of providing Google with their hybrid network connectivity, meaning that Google is trying to bring the two underdogs into new businesses where they could probably gain a better position. This move will likely also cause AT&T and Verizon to expand their services into this kind of network, creating a more balanced market with new areas for competition. It could also allow for new companies could be created in a relatively new market. Essentially anything could happen, and while Google’s true intentions might be unclear, Project Fi will without a doubt change the whole wireless market.