Google set to become a wireless carrier after signing deals with Sprint and T-Mobile

News / Mobile phones

Google set to become a wireless carrier after signing deals with Sprint and T-Mobile

  • 2015-02-13 12:52:43
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News / Mobile phones Google set to become a wireless carrier after signing deals with Sprint and T-Mobile

According to two separate reports from The Information and The Wall Street Journal, Google is working on directly selling wireless services to consumers in the United States. 

The Internet giant has already inked deals with Sprint and T-Mobile, the third and fourth largest carriers in the US, which will allow it to act as an MVNO and resell their services. As of now, it is not yet clear when and for what price Google will start offering its cellular service to consumers.

Google’s entry might just act as a disruptive force that will further force carriers to reduce price and offer better quality Internet access to their users. Sprint executives feared that Google will gain valuable knowledge about how the wireless industry works and then disrupt it.  Due to this fear, the carrier has included a volume trigger in its contract that will allow it to negotiate with Google after the subscriber base of its MVNO reaches a certain threshold. The carrier also took its own time in inking the deal with Google, with the latter approaching them nearly 18 months back.

The project is codenamed “Nova” and is being led by Nick Fox who has been working for Google for quite a few years now.

It is likely that Google will use the wireless spectrum to offer cheaper and faster Internet access to people living in the United States. It was only earlier this week that Google had invested $1 billion in SpaceX to bring Internet to the Mars. The Internet giant has been investing and developing various technologies to bring cheap and quality Internet to billions of people out there. By offering Internet access directly to its primary user base, Google will be able to better control their user experience.

[Via The Wall Street Journal & The Information]

Categories: Mobile phones

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