Hello! And welcome to our Friday column, Worst of the Week. There’s a lot of nutty stuff that goes on in this industry, so this column is a chance for us at RCRWireless.com to rant and rave about whatever rubs us the wrong way. We hope you enjoy it!
And without further ado:
Rumors, it would seem, are what make the Internet go ’round. And the best way to track down your favorite rumor on the Internet is by using Google, preferably from a mobile device. So, this week’s fantastical rumor that Google was on the brink of entering the domestic wireless space through a mobile virtual network operator model set the Internet on fire.
For those of you lucky enough to have been away from any form of Internet connectivity this week, that medium was alight with news that Google was deep in talks with Sprint or T-Mobile US or both about getting in on that sweet MVNO gravy train that has been a money boon for big brands. (Hello Disney Mobile!)
Those rumors suggested that Google is looking to get into the cellular business so it could undercut current pricing models and I suppose altruistically expand the availability of mobile broadband services. And, if those people in turn use their new Google-branded service to search for other, nontelecom related services using, oh I don’t know, Google … well then everyone wins, right?
(The reach of this rumor was so great that an industry analyst I spoke to following rise of the rumor was surprised I was not calling to get the latest on Google’s potential wireless play.)
Don’t get me wrong, I love rumors. Especially those containing such juicy words as “Google,” “Sprint,” “T-Mobile US,” “MVNO” and “billions of dollars.” It’s a search-engine optimization dream come true. (Now, if I could only think of a search engine that could take advantage of this optimization … .)
Trust me, I want Google in the market running an MVNO over Sprint, or T-Mobile US, or even better, both networks. That would be a wireless telecom reporter’s dream. Heck, Google running Motorola’s handset division there for a week or so was pretty sweet news.
But, like that ill-fated attempt to play in the mobile device space, the long-term thought process of Google as an MVNO has a few too many holes in it for me to start “Googling” a new service provider.
Everyone knows that mobile operators are the pariahs of consumers. Just look at any “customer experience” survey and you see that wireless operators rank down near the bottom with cable providers and proctologists. (ZING!) Why would Google want to sully its (quasi-)good name playing in these depths?
The only way Google could make such a move compelling would be if it was really able to come to market with some sort of differentiator in terms of price, service and ease of use. That would mean lower pricing than what is already in the market; somehow better service than what is already out there; and rate plans that lack the fine print that has become standard operating fare for mobile data services.
However, in partnering with a current operator, hitting those goals seems impossible. Every other MVNO out there has claimed to offer more compelling services than the established brands, but the fine print nearly always shows that the same limitations apply.
If Google is really serious about becoming a mobile operator, it’s best chance would be to tap into its Google-fund and purchase an established operator. Sure, it would probably take a few billion dollars, but for a company that is throwing that much money at developing autonomous cars that may have market potential and floating showrooms, throwing billions at a sure-fire market like mobile broadband is a no-brainer.
Having that level of control would also free Google to truly bring unique offerings to the mobile telecommunications space. And, as it has shown with its Google Fiber project, the company seems willing to subsidize the reach of high-speed Internet access.
And, wouldn’t you think that current Sprint owner Softbank or T-Mobile US owner Deutsche Telekom might be open to possibly having those U.S. operations taken off their hands? Especially at a time when the domestic market is going through some pretty significant self-inflicted pricing upheaval that is hitting the bottom lines of one and all? With an aggressive Google in the mix, we could assume that the pricing competition would only increase.
Of course, as we saw with its foray into the device space, Google’s current reliance on established mobile players would seem to be a significant impediment to a Google wireless operator service. What incentive would Verizon Wireless or AT&T Mobility have in continuing to support Android-powered devices if Google’s other hand is increasing service pricing pressure?
Google supporters could counter that the company would not need to rely on those operators to support devices as it would exclusively offer Android devices and thus continue to be a significant outlet for device makers. Good point, though this would also seem a catalyst for both Verizon Wireless and AT&T Mobility to dive deeper into the Apple world and all that entails.
If anything, I love this latest rumor because it got me thinking about all the various actions and reactions that would come from Google’s entry into the mobile space. And, as part of that thinking, I went crazy Googling Google, most often from a mobile device. This led me to realize that regardless of whether Google ever deepens its grasp into the wireless space, even just rumors of such moves is enough to fulfill its true end goal of having more people use Google.
Do I want Google as a wireless operator? Most definitely. But, I would rather not be a pawn in that game.
I welcome your comments. Please send me an e-mail at dmeyer@rcrwireless.com.
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