Google apparently mulling MVNO market
23 Sep 2011
Reports originating from the Spanish press suggest that Google may be using Spain to test the ground for an MVNO launch, although so far there is little in the way of proof to support this.
According to Cellular News, the company’s employees in the country are being supplied with Google-branded SIMs. While it was suggested that these work across networks for testing purposes, an image has been published which shows a device connected to “Google-ES” – which was seen as indicating a pilot MVNO operation.
This is not the first time that Google has been reported to be mulling an MVNO business, in order to increase its ties with customers to include connectivity and billing. According to documents released as part of its Java intellectual property dispute with Oracle, an MVNO operation was considered during the development of Android, although this did not come to fruition.
As far back as 2007, it was suggested that Google is planning an entry into the MVNO market in the UK in partnership with O2 UK. At this point, it was suggested that the search giant would only make sales via its website.
Through its Android platform and range of mobile internet services, as well as its Admob mobile advertising unit, Google has already gained a strong position on the smartphone and value added services markets.
By taking on the role of connectivity provider for smartphone users, Google will be able to take advantage of its billing relationship with customers – it is currently in the process of adding operator billing support to Android Market. This will enable it to offer seamless payment options for content and apps, similar to Apple’s iTunes/App Store combination.
In addition, EU regulators have recently suggested they may look to allow customers to select a different operator to provide their roaming services. With concern about the cost of roaming data services being seen as a significant inhibitor for international use, Google could look to create a cross-border MVNO with attractive data prices, as a way to encourage the use of its core mobile internet services – including location-based search and navigation, and photo sharing.
With its first own-brand handset, Nexus One, Google attempted to cut operators out of the device supply chain, selling the device directly from its website – although with bundled service contracts also available. This strategy was not massively successful for the company, however, due to the strong position of established operators and retail channels in this market.
With its planned acquisition of Motorola, Google is already set to become a competitor to its Android ecosystem partners, including companies including HTC and Samsung which have led the way with adoption of the platform.
According to Cellular News, the company’s employees in the country are being supplied with Google-branded SIMs. While it was suggested that these work across networks for testing purposes, an image has been published which shows a device connected to “Google-ES” – which was seen as indicating a pilot MVNO operation.
This is not the first time that Google has been reported to be mulling an MVNO business, in order to increase its ties with customers to include connectivity and billing. According to documents released as part of its Java intellectual property dispute with Oracle, an MVNO operation was considered during the development of Android, although this did not come to fruition.
As far back as 2007, it was suggested that Google is planning an entry into the MVNO market in the UK in partnership with O2 UK. At this point, it was suggested that the search giant would only make sales via its website.
Through its Android platform and range of mobile internet services, as well as its Admob mobile advertising unit, Google has already gained a strong position on the smartphone and value added services markets.
By taking on the role of connectivity provider for smartphone users, Google will be able to take advantage of its billing relationship with customers – it is currently in the process of adding operator billing support to Android Market. This will enable it to offer seamless payment options for content and apps, similar to Apple’s iTunes/App Store combination.
In addition, EU regulators have recently suggested they may look to allow customers to select a different operator to provide their roaming services. With concern about the cost of roaming data services being seen as a significant inhibitor for international use, Google could look to create a cross-border MVNO with attractive data prices, as a way to encourage the use of its core mobile internet services – including location-based search and navigation, and photo sharing.
With its first own-brand handset, Nexus One, Google attempted to cut operators out of the device supply chain, selling the device directly from its website – although with bundled service contracts also available. This strategy was not massively successful for the company, however, due to the strong position of established operators and retail channels in this market.
With its planned acquisition of Motorola, Google is already set to become a competitor to its Android ecosystem partners, including companies including HTC and Samsung which have led the way with adoption of the platform.
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