Who dares follow the Google MVNO path?
Earlier this year there was a great deal of buzz going around that Apple would unveil its own mobile service offering through a mobile virtual network operator approach. The buzz followed the Google MVNO launch of its Project Fi service.
With AT&T’s recent announcement of Wi-Fi calling, it’s clear the world’s largest communications service providers are gearing up to compete in the Wi-Fi wars with their own inexpensive, convenient solutions on compatible devices after successfully meeting Federal Communications Commission requirements.
Google’s Project Fi is steadily growing and continues to position around Nexus devices, although SIM cards also are available for non-Nexus phones and tablets. In order to take advantage of the opportunity, consumers need to request an invitation to join the network, while Google selectively approves consumers based on their ZIP code.
The offering is simple, the terms are inexpensive and Google is very transparent about its partnerships with Sprint and T-Mobile US for cellular coverage. Google is pushing, however, a Wi-Fi “network of networks” and in its terms and conditions refer to its service as either “Project Fi” or “We.” Google offers service to over 120 countries without roaming charges. The company is positioning it as the ultimate “network of networks” with “special sauce” technology that works in its devices and in the network to help end users find and connect with the strongest Wi-Fi signals for the best quality of service.
Will slow and steady win the race?
For sure, Google is doing what it is (call it an MVNO or not) with a controlled and clearly high-quality rollout effort. The simplicity of its service, and its related marketing, belies a depth of thought and strategy that will likely pay off for the company, which in parallel has begun positioning itself as “more than search and advertising.” The creation this year of “Alphabet” helps Google move perception forward as it literally “drives forward” with driverless cars and now real-time communications devices and services.
As part of its growth “moves,” this dual brand harmony will allow Google to broaden its umbrella brand over a diverse portfolio of individual brands, including the original Google. Project Fi and the mysterious We seem likely candidates under that new umbrella.
Who will be next?
No doubt companies like Amazon.com are gearing up to compete with Google by offering services of its own, tied or untied to its popular low-cost Kindle Fire tablets and other devices. Wouldn’t it be easier to just go to Amazon, order a new device and get services with it, without having to contract with a traditional service provider?
Now to Apple. While the company benefits tremendously from retail channels and service provider partnerships with the tier-one operators, as the popularity of Wi-Fi services grow, why couldn’t and why shouldn’t Apple build its own hyper-interconnected networks and build on its brand as well as its massive database of e-commerce customers? Will the Apple store soon include services leveraging its own existing billing systems for recurring revenues? Look what Apple did to the music business – disruption on a tectonic scale.
Facebook has wasted no time or money in bringing real-time communications through Wi-Fi to its members and subscribers, with over 1 billion end users taking advantage of WhatsApp and Facebook Messenger. WhatsApp already supports voice calls and works perfectly over Wi-Fi. Facebook-to-Facebook voice and video calls are up and running and the company is investing in setting up drones to provide wireless Internet service.
Then there are the cable companies, including Cablevision whose Flywheel service has grown and is stimulating interest in similar services from other cable companies, which can market a low-cost device to its subscribers and get into the mobile business leveraging its investments in hot spots, fiber-to-the-home and more.
Another totally independent category is pure-play Wi-Fi service providers including Boingo, iPass and Fon. I predict they will eventually figure out the value of their Wi-Fi networks and then work with third-party cloud application providers to offer both Wi-Fi connectivity and communication services – for both humans and machines.
Will Google, Amazon, Apple and others go after the SMB and Enterprise Market?
There’s no doubt in my mind that when the challengers continue to succeed at bringing real-time communications services to consumers in disruptive ways, they will move quickly to serve businesses as well. They have already moved in that direction and have millions of customers using their devices (iPhones, iPads, etc.), platforms (Amazon Web Services) and services (Google Apps including Docs, Drive, Hangouts and more). Why not also offer the actual service to connect and access?
Then of course there is Microsoft, a company making plenty of noise – and headway – with Office 365 and now Skype for Business as a replacement for the not-so-popular Lync. There is no company as “embedded” into business as Microsoft, for better and for worse, but to its credit the company is working hard to simplify, virtualize, “reprice” and rethink real-time communications. With Skype, Microsoft is already in the service provider business and with Skype for Business and more and more online computing, could it replace traditional providers for voice, data and video connectivity as well?
Things may be moving faster than we think
While Project Fi’s rollout appears to be “slow and smooth” without a lot of fanfare – carefully making certain to position and applaud its partners T-Mobile US and Sprint – it’s likely the waves of change will create oceans of value over the next few years. In the composite view, as Google, Amazon, Microsoft and other challengers in the brave new world of real-time consumer and business communications continue, the builders and operators of networks – whether fixed, cellular or wireless – are wise to consider where they can compete or collaborate.
Ultimately, the consumers are again in the driver’s seat with more choices than ever, with more freedom and flexibility as well as lower cost and continual innovations in applications and services driving “usage” up. The big question is not whether the rising tide will lift the boats – it will – but rather, which boats are best engineered to ride out the storm and survive the surge?
Ashish Jain has over 12 years of telecommunications industry experience with expertise in the areas of real-time communications for fixed and mobile networks, wireless security, mobile over-the-top and enterprise social media applications. In his current role as director of solutions marketing at Genband, Jain drives planning and strategy for mobile security products covering session border controller, wireless access gateway, diameter signaling product line and manages IP-based real-time communication solution portfolios covering VoLTE, VoWi-Fi, small cell, carrier Wi-Fi, SIP trunking and IP Interconnect. Jain holds a bachelor’s degree in electronics engineering and a master’s in computer science, with specialization in networks and communications, from The University of Texas.
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