Five Lessons I’ve Learned From Google Cell Service
Google wants more control of the cellular market and is looking to partner with the major carriers to accomplish that goal. The hope is that this new deal with Verizon and Sprint will allow Google to gain more control over the mobile industry and potentially entice new customers to its site through increased influence over the mobile wireless market. Google executives made the announcement today at their annual Mobile World Congress. Here is what I think about this and some of the other topics.
There has been much talk lately about the possibility of Verizon merging with T-Mobile or AT&T, and that merger would create one gigantic carrier. I believe that this discussion may be premature, especially since both carriers are in a fierce battle for spectrum rights. Even if Verizon does acquire T-Mobile, they will remain a sub-prime carrier catering to a small portion of their current market. What I am concerned about is that Google will exert far too much control over the mobile wireless industry. That would free up Google to do quite a few great things with its vast resources, but it's also a bit scary.
What about Google's future plans? They are in talks with Sprint and may be in talks with a number of other carriers as well. It appears that Google is working on a new product that will allow cell phones to use Google search services. This is interesting because we have been hearing rumors about a Google cell service for years now. How does this play into my argument?
If Google can gain control of the mobile service industry then they would have a monopoly on search and the information highway. That means that they would be able to charge more for the same service that everyone else is offering. That would cost the consumer more money. It would also mean that they could give lower service and quality to their customers. That would be a bad thing for consumers and a good thing for Google.
When you think about it, Google makes more money from advertisements than they do from cell phones. Therefore, I don't see how giving away cellular service would hurt them. They already have the biggest advertising platform on the web so it wouldn't make sense for them to be giving away another piece of that pie. In fact it makes perfect sense. The more people who use their services the more money they make.
To conclude my argument I would say that if Google wants to stay competitive then they need to offer more than just cellular services. I would also suggest that if they are going to start offering additional services like Google Buzz, that they start those services with a limited offer. Don't let them just give it away. Let people try it out before you decide to buy. Offer a free week of service and a one time free account.
If they want to be the most successful company on the internet, they need to offer more than just search engines. They need to offer the cell phone user an all around solution. As an example, let's say you are looking for directions to your home. With the Google Earth application you could type in your address and get maps, directions and even videos that show you exactly what you are looking at.
Think about this if you will. Google is one of, if not the best search engine company out there. Combine that with a great service like Google Buzz and you have one massive marketing arm. You can see how strong a position Google is in the cell phone industry. It makes perfect sense for them to be offering more than just Google cellular service.
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