The Financial Times reports that Google has decided to launch its own mobile network in the US, saying that the network "would be small but significant enough for traditional mobile operators to be able to learn from any good ideas ... The company hopes that by showing customers that better services are possible they will demand more from established operators."
According to the story, "The mobile launch comes with the internet juggernaut increasingly frustrated at the slow pace of innovation at incumbent telecoms companies, which it feels is preventing it from providing new services in established markets while leaving unconnected users around the world out of reach.
"The US ranks below many European countries for broadband speed and affordability, a situation some analysts say could constrain Google’s business model, which relies on getting as many people as possible online in the hope that they will then use its services."
According to the story, "The mobile launch comes with the internet juggernaut increasingly frustrated at the slow pace of innovation at incumbent telecoms companies, which it feels is preventing it from providing new services in established markets while leaving unconnected users around the world out of reach.
"The US ranks below many European countries for broadband speed and affordability, a situation some analysts say could constrain Google’s business model, which relies on getting as many people as possible online in the hope that they will then use its services."
- KC's View:
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The subtext of the announcement is that Google has the resources to become a major competitor in the mobile network business, which could position it as an alternative to players such as Verizon and AT&T.
The story notes that this is standard operating procedure for Google, that the company "is also rolling out its super fast Google Fiber broadband product in more than 30 cities, prompting companies such as AT&T to follow suit." So what we can assume, based on history, is that Google will continue to push the innovation envelope.
