Google takes a huge step in growing its brand as the tech giant announced it will soon become a mobile virtual network operator (MVNO).
The search engine giant is all set to shake up the telecom business as Google confirmed it will launch its own small-scale mobile wireless service in the United States.
Google's Senior Vice President Sundar Pichai announced during the Mobile World Congress in Barcelona on Monday, March 2 that the tech giant will release more details about its plan to offer a mobile Wi-Fi network in the coming months.
U.S. News noted that on 80 percent of phone shipped around the world, Google's Android operating system is used, and this gives the company a perfect stage to provide its own network that will allow it to "push the boundary of what's next," Pichai said, according to a live blog of the speech reported by The Verge.
According to Zacks, Google Inc. shares rose 2.2 percent to $575.02 on Monday, March 2 following the company's announcement about its plans to sell wireless phone services directly to consumers in the United States. Google did not reveal any details though about its plan to extend outside the U.S.
Pichai said at this stage, the company needs to think of hardware, software, as well as connectivity together, specifically with things like watches. He further confirmed that the tech giant does not intend to be a carrier at scale and they are working with existing partners. He added the company's ideas will come to fruit in the upcoming months.
Google has spoken about the plan with AT&T and Verizon, Pichai revealed. According to industry insiders' earlier reports, Google's effort to be a mobile virtual network operator, codenamed "Nova," intends to directly sell phone service using networks of smaller telecom competitors Sprint and T-Mobile. This led to a question during the event about whether Google is pushing for lower wireless price; however Pichai fended off the question.
According to TechTimes, Pichai's announcement that Google will become a mobile virtual operator (MVNO), implies that it can buy "wholesale access" from companies like T-Mobile, Verizon and Sprint and then sell cellular plans to its own customers. Back in 2012, the search giant announced it would be entering into the market of high-paced, lighting-fast Internet speed, confirming connection rate that would be 100 times faster than usual. In addition, the company stated that the residents in the Kansas City would be the first to experience the power of Google Fiber. TechTimes reported that the Google Fiber initiative has expanded to cities like Utah, Provo, Austin and Texas.
The search engine giant took the tech world by surprise by becoming a MVNO citing the company already serves as the existing place for all things, search engine and Android.
We will need to wait and watch how the company's overall plans of becoming number one wireless carrier will fit its other initiatives.
