It Makes Sense That Google Wants To Be a Wireless Carrier: And That Competitors Are Worried About It

What to do when regulatory authorities are openly questioning your reach, dominance and business methods?

Make nice, retreat...or double down.

Google has chosen option number three, the 'what the hell, they hate us anyway so why not give them something to really worry about' choice.

The reality is that most of the objection to Google is coming from Europe and is based on competitive concerns about that continent's inability to field a technological challenger to the US or China in what is arguably the most important industry of its time. That they have been unable to do so despite impressive educational, intellectual and professional resources raises uncomfortable questions about financial, economic and social policy. But those are not Google's problem.

Fending off Amazon, Alibaba, Facebook, Apple and Xiaomi IS Google's problem, however, and they have decided to address it aggressively.

All of the enterprises attempting to capture global attention and then convert it to adherence recognize that dominating as much of the consumer's technological interface with the rest of the world is going to be a crucial advantage if they hope to sustain their growth. So Google's offering to become a wireless carrier in partnership with telecoms like Sprint and T-Mobile suggests they understand and are willing to use the power of networks writ large achieve the desired dominance.

One might argue that this approach did not work so well for Microsoft. But these are different times, different technologies - and different leaders. JL

Richard Nieva reports in CNet:

While Google would be selling its own mobile plans, it's unlikely that the project is a play to undercut the wireless networks. Instead of elbowing out the carriers, Google seems to be more interested in experimenting with low-cost plans (which) could mean more people using more data -- which gives Google more opportunities to show advertising to consumers.
Google makes the software running on most smartphones, and now may also want to manage your mobile data and voice calls.
The world's largest online search company is getting ready to sell mobile plans that will run on Sprint and T-Mobile's cellular networks, according to The Information. The project, codenamed "Nova," would involve Google paying those carriers for access to their networks. The initiative, which is being led by Google executive Nick Fox, isn't expected to launch this year.
The move underscores Google's increasingly complicated relationship with the telecommunications industry as both partner and competitor. Google's Android operating system powers more than 80 percent of the world's smartphones, but carriers often act as the gatekeeper for where a person buys a device. The initiative, according to the Information, is meant to drive down prices and to try to improve the experience for customers.
Google, Sprint and T-Mobile declined to comment.
Google has embarked on a number of wireless connectivity projects, as it aims to bring more people online so it can expand its user base. The company has developed its own fiber-optic network, called Google Fiber, to deliver revved-up broadband access to customers.

The tech giant has also created Wi-Fi-beaming balloons that would spread Internet access across the globe to underserved regions. The company is also experimenting with satellites for that reason. On Tuesday, the company said it's taking part in a $1 billion investment, along with Fidelity, in the rocket company SpaceX. Some think the funding is a play by Google to beef up its satellite efforts. The wireless network project would make Google a so-called mobile virtual network operator, which means that it doesn't own the infrastructure over which it offers services. Google would pay Sprint and T-Mobile for capacity over their networks, which in turn would be sold directly to consumers. Other companies competing in that market are TracFone and FreedomPop.
While Google would be selling its own mobile plans, it's unlikely that the project is a play to undercut the wireless networks. Those networks have marketing might and retail stores to attract customers and showcase plans, while Google expects to sell its plans through a Web store.
Instead of elbowing out the carriers, Google seems to be more interested in a larger attempt to shake up the industry and compel it to make changes that could benefit the company. For example, Google makes all but a sliver of its revenue from its juggernaut advertising business. Experimenting with low-cost plans could mean more people using more data -- which gives Google more opportunities to show advertising to consumers.
It's the kind of logic that drove Google to create the Android operating system in the first place. Offering wireless service paired with an Android device represents a logical next step.