Google To Become A Wireless Carrier With The Help Of Sprint And T-Mobile

Posted: Jan 22 2015, 7:32am CST | by , Updated: Jan 22 2015, 7:34am CST, in News | Technology News


Google wants to become a Wireless Carrier with the help of Sprint and T-Mobile
Credit: Getty Images

Google is now going to sell Wireless Service as well. Google has signed deals with T-Mobile and Sprint and this move will definitely rivals to cut their prices and improve speeds.

Google is ready to start selling its mobile phone plans directly to customers and manage their calls and mobile data over a cellular network according to sources. This new service by Google is expected to run on T-Mobile and Sprint’s networks.

Now the company is busy in striking a deal to buy the wholesale access to those carriers’ mobile voice and data networks. This will then make Google a mobile virtual network operator or MVNO.

This project has been codenamed by Google as ‘Nova’ and is being spearheaded by longtime Google executive Nick Fox. Moreover the launch of the project sees possible this year even though Mr. Fox had previously looked at starting the service last fall. 

With this new project ahead Google has planned to shake up the U.S wireless market by selling voice plans to consumers through their expected deals with T-Mobile and Sprint.

This move by the company is one of the strongest signals that the California based company is now extending and expanding its ambitions far beyond YouTube videos and Gmail email service.  Plus the executives at Google now also want the company to play a major role in how those services are delivered to consumers. 

Well Sprint which may sign a deal with Google is the third largest wireless carrier and T-Mobile on the other hand is ranked the fourth and is also open for a deal with Google. Google will be having separate agreements with both the companies and Google will resell service on the Sprint and T-Mobile networks as sources reveal.

There is no need to be shocked or surprised as such wholesale agreements are pretty common. These agreements allow sellers such as Google to pitch wireless service under their own brand names. 

Well many see the entry of Google into the mobile phone business as a headache for an industry that is already struggling with a price war and soaring costs for wireless spectrum.

Sprint executives state that they are expecting a boost from this agreement and that this boost from an influx of new Google customers outweighs the risk that the Internet search giant will learn too much about the wireless business. However this headache for the competing companies will surely reduce costs and increase speed for the customers. 

The executives at Google had first reached out to Sprint more than 18 months ago. This was for a potential resale deal which was known as a mobile virtual network operator agreement or MVNO.

Such agreements are basically a standard high margin business for carriers which are able to sell excess capacity on their networks and gain customers without incurring any costs of marketing to them. 

It seems that this Google project has many other companies waiting in anticipation and once Google launches this project the customers are surely going to benefit. 

Sources: TheInformation , WSJ

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M. Affan covers the hottest news that captivate the web today.




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