Media reports suggest that Google is taking actions to launch mobile service as a mobile virtual network operator. Why on Earth would they do that? MVNO is such an archaic and anachronistic concept. It is unlikely that Google will launch a traditional MVNO. Traditionally, MVNOs have been launched either as an incremental service by an established nonwireless brand or by a new company offering low-cost service. Google is neither. There is so little, if anything, to be gained by Google launching a traditional MVNO service.
Where there is smoke there is fire, usually. If a Google MVNO is not the “fire” being projected by media reports, what is? Google has the resources to do much more. If they choose to do so, they could accelerate the fundamental transformation of mobile services globally. Imagine a future in which Google offers its telecommunication services to consumers without international long-distance or roaming charges. Google currently offers some communication services to hundreds of millions of customers in multiple countries running on any broadband access, including some voice services. If Google sources LTE access from existing mobile network operators it would be possible to extend its current offerings. With today’s technology, it would be a relatively simple proposition for Google to build its own evolved packet core, connect – using a multi-operator core network – to LTE access operated by others and run any service it wants.
Distance is dead for IP services, but not for telecom services. When telecom services move to IP networks, as is the case with voice over LTE, is there any rationale why IP voice services should be any different? T-Mobile US killed international roaming charges in 2013, but not international long-distance charges. Google, and other international brands, have the means to make distance completely irrelevant for voice, bringing voice in line with all other IP services.
Farfetched? Consider when MNOs charged what would now be considered outrageous sums for roaming within the U.S. I clearly remember paying $1 for the privilege of initiating a mobile phone call while traveling to New York, regardless of whether the call was connected. If the call got dropped, as was often the case back then (mid-1990s), the MNO would charge more roaming fees to initiate another call. Then it would add long-distance charges.
Two points to consider:
• This article cites Google, due to the media rumors. But Google could easily be replaced with one of several other names, including Apple, Facebook, Microsoft and Twitter, without changing the relevance of the assessment.
• Not one MNO is included in the set of companies that could carry out this change, for two reasons: the MNOs have no financial incentive to do so; and, they do not have the requisite scale.
The trends clearly show that MNOs are quickly becoming bit pipes. There is little reason for LTE without Internet services. With LTE data services, MNOs offer high-speed access to the Internet and little else. They compete on coverage and speed, not on a set of value-added services. MNOs have introduced few compelling value-added services since launching LTE. With voice over IP, there is no rationale for international long-distance charges to continue.
Madan Jagernauth started FutureMobile Services in 2013 after more than 20 years in the wireless industry, including leadership roles for internationally recognized companies like Huawei Technologies and Nortel. With a master’s degree in engineering and an MBA in telecommunications management, Jagernauth has a broad understanding of technology and business, with a focus on innovative solutions to solve real-world problems. Today, Jagernauth applies this experience, focus and understanding of the evolving wireless industry landscape to provide wireless solutions for clients in the United States, including market analysis and forecasts, business analysis and planning, requirements analysis and wireless communication applications. futuremobileservices.com/.
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