Google is reportedly in talks with telecom giants, Sprint and Verizon, on a plan to start its own wireless network business unit.
According to sources of The Information, the company will offer wireless network plans in cities where they first introduced the Fiber broadband. These locations include Kansas City, Provo,Utah , Austin, Texas and others.
The wireless network that Google will provide will enable their subscribers to call each other, send text messages, and connect to the Internet using their mobile phones. However, the company is not planning to build their own market; instead, they will acquire access to 3G and 4G networks, offering wholesale prices to current providers.
If the plan pushes through, Google will become a mobile virtual network operator (MVNO) just like Lycamobile that operates in the United States. An MVNO has no hardware or infrastructure needed to supply connectivity to their users; instead, they buy this connectivity and resell it to their subscribers at a lower rate. Lycamobile is the company behind Tesco Mobile in UK, Telefonica, as well as T-Mobile, Daily Mail reports.
Google becoming an MVNO will allow the company to start selling their Nexus phones with connectivity bundles and promos. Aside from that, subscribers may also get a more affordable deal from Google as the move will solidify the prices for phones and the plans that come with them.
Google Fiber, which costs at least $70, has been receiving good feedback in terms of connectivity and speed. Once Google has a good wireless network in place, this will help the company and its subscribers to reduce the costs and time used in establishing their network.
However, according to a commentary in CNET, this new venture of Google is a risky idea due to its dependence on other carriers, such as Sprint and Verizon, which can limit the services it can offer to its customers.
