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Google to offer free subscription mobile phones? PDF Print E-mail
Written by Stan Beer   
Sunday, 05 August 2007
They may not be as pretty as the Apple iPhone but new Google mobile phones will not be tied exclusively to one carrier, they'll operate on 3G networks, they'll come in multiple form factors and best of all they may offer free subscriptions funded solely by advertising.

According to a report in the Wall Street Journal , Google already has phones under development which could reach the US market within a year and is holding serious talks with both handset manufacturers and carriers to offer Google branded phones. The phones will be customised to feature Google products including search, email and new Google web browser developed specifically for mobile phones.

According to the WSJ, Google has already spent hundreds of millions of dollars on the project and prototypes of the new phones look similar to slim Nokia phones with a slide-out keyboard, as well as other models that look similar to Blackberry or Treo smartphones.

The report also states that Google intends for its phones to have cameras, Wi-Fi and be built to work on fast 3G networks. In other words, Google wants to maximize the mobile Internet experience for users so that it can maximize its mobile online advertizing opportunities.

Google has already declared its intention to be a serious player in the mobile communications business, one way or another. The search leader has signaled its intention to be a bidder for a slice of mobile wireless spectrum in the 700MHz band. As the WSJ points out in its report, some US mobile carriers have not in the past been enthusiastic about the prospect of incorporating Google search into phones on their networks because Google demands a large slice of the advertising revenue. However, other carriers, such as Deutsche Telekom subsidiary T-Mobile USA, may be ready to talk turkey.

An interesting aspect of Google's plans is its relationship with Apple, which has just entered the mobile business with iPhone. Both companies have a number of common directors, including Google CEO, Eric Schmidt. Descriptions of the Google phone's ad-supported free subscription multi-carrier business model make it sound like the antithesis to iPhone with its money up front plus two-year subscriptions with AT&T.

It is not clear if Google would open up its phones to third party developers but it appears likely given the company's present online policies.

If serious competition did arise between Google and Apple in the mobile phone space, it would tempting to think of the battle as being reminiscent of Microsoft and Apple in the desktop space. However, the analogy would be superficial. In the cell phone handset space, both companies are relative minnows compared to the likes of Nokia and Motorola. Nokia currently sells more phones in 10 days than Apple is hoping to sell in the coming year.


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