It appears as though Google is going to be entering the wireless business in a major way.
The California-based tech giant made its first big step in creating its own cellular service by partnering up and purchasing capacity on the networks of Spring and T-Mobile USA.
It may not be long before Google begins selling mobile phone plans directly to customers. However, this means that the company will just be reselling what is provided on Sprint and T-Mobile networks.
The deals would make Google a mobile virtual network operator (MVNO), which is a carrier that doesn’t operate its own network but sells services that run on other network carrier’s infrastructure.
T-Mobile is America’s fourth largest mobile carrier, while Sprint is the country’s third largest.
It is not a surprise that Google would one day enter this market, given its ambition and the fact that it is so heavily involved in mobile because of it’s Android operating system – currently the most widely used mobile OS in the world.
Will it be a threat to other carriers though? Not likely.
John Bergmayer, a senior staff attorney at Public Knowledge, told San Jose Mercury News:
“MVNOs are cool, they’re a good way for Google to get its brand out there and offer interesting pricing plans. But they don’t really change the competitive dynamics of the wireless industry. They’re just reselling Sprint or T-Mobile.”