Google plans to emerge as MVNO: Report
07 Apr 2014
Google, which provides the world's most popular phone software and offers one of the fastest broadband speeds in the US, is now working on plans to emerge as a mobile network operator, according to reports.
US media reports said Google has plans for its own wireless network that customers would use to make calls, send texts and browse the web on their mobiles. Rather than building masts Google is discussing buying access to existing 3G and 4G networks at wholesale prices, and sell the connectivity back to customers at a cheaper rate.
This would see Google emerge as a mobile virtual network operator (MVNO).
A mobile virtual network operator (MVNO) is a company offering mobile service plans over existing networks.
The infrastructure that the networks are built on are not owned by the MVNOs, rather they access parts of these networks at wholesale prices.
An MVNO typically runs as an independent company, having its own staff and customer service and the plans would mean Google could consolidate its operations as an internet service provider while the mobile network complemented its Google Fibre broadband, according to reports.
The Information said Google had talked to Verizon and Sprint about leasing wireless capacity for launching a mobile service.
The blog, earlier this week, had cited unnamed sources as claiming that Google had talks with Verizon and Sprint over leasing access to their mobile networks in markets where Google had already deployed its Google Fibre 1Gbps broadband service. Google has so far launched service in Kansas City, and was building Google Fibre in Austin, Texas, and Provo, Utah. It also recently announced plans for expansion of the broadband service to several more cities.
Building a wireless business as an MVNO that used another wireless operators' setup was a tough way to make money, even for a company like Google, the blog added. For starters there was the reliance on another company's wireless network, which was a risky proposition. Also even though Google would likely get access to a far more extensive wireless network than it could build itself in a short period of time, the network assets that major wireless carriers offer MVNOs are typically limited.
