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from Tech Consumer
Google in Advanced Talks with Verizon & Sprint
by Bob Caswell
The latest info from our good friends those “people familiar with the matter”is that Google is in advanced talks with two U.S. cellphone operators:Verizon Wireless and Sprint Nextel. The talks, of course, are revolvingaround the two companies offering new Google-powered mobile phones.Google has to get some major wireless operators to sign on to thisproject if it’s to reach its rumor-generated goal of getting Gphones infront of consumers by the middle of next year.
This wouldn’t be a bad entry into the market, as Verizon is the No.2 carrier, and Sprint is the No. 3 carrier (in the U.S. bysubscribers). And let’s not forget that Google has loads of cash rightnow (not to mention a stock that’s about to hit $700). The speculationis that this partnership might allow the big bad cellphone companies tooffer cheaper phones, since Google’s licensing fees (for its softwareand operating system) are probably going to be lower than the industrystandard. The search giant is more likely to cash in on cellphoneadvertising when/if it becomes the next big thing (or so shareholdersare hoping by paying that inflated price for the stock).
But since the phones would be open to third party applicationdevelopment, Google is still working out the details on how it willprotect cellphone consumers within the context of privacy and security.The other detail being worked on is the advertising itself. Justbecause wireless carriers will likely be paying a much smallerlicensing fee to Google (versus the other alternatives already outthere) doesn’t mean they don’t want a piece of the cellphoneadvertising pie. And how will the consumer react to cellphoneadvertising? These are all questions currently being pondered byexecutives in large conference rooms.
An interesting side story is the fact that Verizon and Google wererecently fighting a battle in Washington over whether wireless carriersshould open up their networks. Verizon was in the process of trying tooverturn certain new rules the FCC agreed to because of Google. Butlast week Verizon dropped its appeal. While a spokesman for Verizonsaid there was no link between the lawsuit dropped and discussions withGoogle, well, it does seem like a coincidence that the two companiesare now playing nice in the sandbox… |
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