Why Google’s plans to become a wireless carrier do not bother current carriers
Google Corporation, if I may say so, and the Shvets, the Reaper, and the dude igrets - at present, the company's reserve funds help it occupy new niches. Space exploration is one of these niches, but there are more mundane plans, for example, to become a wireless operator. Rather, a virtual mobile operator , MVNO.
Dobra Corporation plans to buy excess network resources (bandwidth) from Sprint and T-Mobile telecom operators and resell the service for its own customers under its own brand. There are quite a few virtual telecom operators in the US that work in the same way - Cricket Wireless, MetroPCS, Pure Talk, Republic Wireless and many other companies. But it is Google that needs special attention, according toThe Wall Street Journal , because the corporation already has too much power, so to speak.
For this reason, a special clause is specified in the agreement with Sprint, in which the company-owner of the network gets the opportunity to discuss further implementation of the contract if Google has a large number of users. It is not clear how things are with T-mobile, but it is likely that the agreement between this operator and Google also spells out a similar opportunity.
The fact that Google is going to become a virtual telecom operator was written in The Information , and now it is clear that the corporation plans to work very actively in this area.
From the side, Google’s plans look very ambitious, and some experts are even afraid of entering such a large corporation into the wireless market. How - to give into the hands of a company that is experimenting with free Wi-Fi networks (in the form of balloons - Project Loon) and high-speed wired access to the Network?
However, there is really no great danger in this. Even Sprint's precaution, as discussed above, may not be used. The fact is that it is unlikely that the virtual mobile operator Google will really get too many users. The same high-speed wireless Internet, the Google Fiber project, is developing too slowly to threaten at least some fixed-line Internet service provider. Most likely, the same will happen with the communications operator from the Corporation of Goodness: at the very beginning it is planned to begin work in a limited number of cities. In this case, some technical problems may arise (and most likely will arise), or antitrust committees will begin to oppose.
Among other things, virtual telecom operators have never become too popular - this is a niche service with which a very limited number of users work.
In a sense, Google’s similar work can be compared with the corporation’s entry into the gadget market - after all, the company has been selling its own devices for a long time not only through resellers, but also independently. However, Google sales do not particularly affect reseller sales. The corporation conducts certain types of activities, including the same sale of gadgets through Google Play, because it needs to enter new markets, and considerable amounts of money allow it to be done without problems.
In the long run, perhaps Google will be a competitor to the traditional telecom operator, but, in fact, you can wait for this for a very long time.