Google is 9 years old today. It still makes most of its revenue from Ad sales. But its strategic thinking in moving from traditional Internet to everything mobile is clear from its many mobile initiatives. The moves range from the Muni-Wifi to partnership with Sprint on their WiMax network and even the possibility of being a MNO (Mobile Network Operator). Google is shaping the upcoming 700Mhz auction and has pledged a minimum bid to coax FCC to auction of a slice for open access.
In the connected Internet world, no one really owned the Internet and Google thrived on it, especially since all its applications are web based (software as a service). In the mobile internet arena, the are owners to the mobile network. The MNOs had bid big amounts to own the spectrum and invested considerable resources to rollout and maintain a wireless network. So Google is making a strategic move to partner with a MNO and also position itself to be a MNO.
It is not easy to become a MNO overnight, especially given that Google (in simplistic terms) a software centric business. Being a MNO requires acquiring mobile infrastructure, acquiring spectrum, building cell sites and maintainng this network (Can you hear me now! type work), subscriber acquisition, billing etc.
However all these are almost routine work (essential but already perfected by others) that doesn’t require Google’s innovation. With infrastructure providers like Ericsson and Nokia taking on these mundane tasks from MNOs. For example India’s Bharti-Airtel outsourced their network operation to Ericsson, so did 3 and Orange. Google could do the same and focus on intelligent services delivery, which it does best.
With its immense resources Google is going to play a decisive role in shaping the Mobile communications of the future.
Here is a nice summary of Google’s mobile initiatives from the Telephony magazine:
- Xohm: Google has partnered with Sprint to be the portal services provider for its upcoming WiMAX service. Google will supply a suite of communications and organization applications, as well as collaborate with Sprint on location-based and presence services.
- 700 MHz: Google has expressed a surprising amount of interest in the upcoming auction, which will allocate new broadband wireless licenses in the U.S. Not only has it lobbied the FCC to include open-access rules for certain licenses (against Verizon Wireless’ opposition), it has indicated it may bid in the auction itself.
- Muni Wi-Fi: Google has launched its own free citywide Wi-Fi service in its hometown of Mountain View, Calif. It also has ambitions to be the service provider behind other cities’ municipal wireless launches, although many of those projects have been canceled.
- Google Mobile: Google has recreated many of its most popular Web applications and services for mobile devices, launching Java versions of its Gmail and Google Maps programs and expanding its search capabilities to the mobile Web and short message service. In some cases, it has succeed in placing specific applications as core services on handsets and mobile devices, such as Google Maps on the iPhone and Google Talk on Nokia’s Internet tablets
- Google Phone: Almost a foregone conclusion, the Google phone is the most anticipated device since Apple’s iPhone, even though Google has not officially confirmed its development. The big question is whether it will be a Wi-Fi-only device using Google Talk or one with a cellular chip.
- AdWords: Google is optimizing its core text-ad-delivery technology for mobile, serving up ads for mobile-optimized sites on specific phones when conducting a mobile Web search.
