Google is Building a Phone
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What we actually know publicly about Google's plans for a mobile phone could fill a thimble. What is being speculated online could fill a swimming pool.
Google's mobile phone ambitions, according to the blogosphere, seem centered around three areas of interest: wireless spectrum, devices, and content. These three areas of Google focus are all about Google making money and keeping up with competitors such as Yahoo and Microsoft.
Maybe I've been reading too many Google phone blog posts, but it's all starting to make sense.
Breaking it Down
On the Internet Yahoo and Microsoft are playing second fiddles to Google when it comes to search and ad revenue. But when it comes to mobile phones Yahoo and Microsoft are way ahead of Google.
For years Yahoo has been making steady in roads into the mobile marketplace. Most recently Yahoo's OneSearch mobile search engine replaced Google to become browser maker Opera's mobile browser search provider.
As for Microsoft, this year nearly 20 million mobile devices will ship with a version of Microsoft software on them, according to estimates from Yankee Group. Microsoft is even mulling the possibility of creating its own mobile phone based on the Windows Mobile OS.
Spectrum Speculation
With all Google's competitors muscling into the mobile space it's no wonder Google is feeling inadequate when it comes to the mobile space.
To buy its way into the running Google announced its intent earlier this year to spend a minimum of $4.6 billion to bid in an upcoming 700MHz wireless spectrum auction. By owning the spectrum Google could rollout a plethora of Google wireless services. Google analysts guess the company would use the wireless spectrum to either build its own cellular network or work with another company to create one.
Gadget Guessing
One prevailing theme in Google speculation is that the search engine giant has developed a Google mobile phone. More than a few sources have told the media that a number of handset makers have created prototype Google phones that could be priced as low as $100.
The Wall Street Journal reported in August Google has built prototype cell phones, to be mass-produced by multiple hardware manufacturers
Sources say that Google hopes to attract new customers with low upfront and monthly wireless costs. Supplementing monthly fees would be ads delivered via the handset. This would rattle the cell phone old guard who is used to billing its customers monthly and doesn't currently rely on mobile ad revenue to keep their lights on.
Platform Pontificating
If Google really wanted to deliver an ad-supported cell phone service the most important thing would be to develop a mobile operating system or Web browser. To that end Google watchers are convinced the company is creating a mobile operating system or platform.
The rumors got louder in 2005 when Google gobbled up a startup named Android. Not a lot is known about Android except it makes mobile software and the same people behind T-Mobile's Sidekick handset founded Android.
More recently confirmation pointing to a Google mobile platform came to light when Google filed a patent last month that would allow users to pay for goods from vending machines and retailers -- as well as make larger payments -- via text message, or SMS (short message service) technology.
What isn't clear is whether Google is just interested in providing a platform, or delivering a platform and the hardware as well. Of course Google won't officially say a word.
Money Matters
There is a lot at stake in the mobile space. In 2007 the mobile advertising market will be worth $450 million, according to market research firm Frost & Sullivan. That's a lot considering only 15 percent of mobile phone users have browsed the Web using their cell phone, according to JupiterResearch. Analysts expect mobile search and surfing to become even more popular in the years ahead.
Currently surfing the Web on your cell phone is less than enjoyable than it could be. Many blame the carriers themselves who have created walled gardens and don't let you access a full range of Web applications and services. Instead services like Verizon Wireless only allow you to view the video clips it provides for download and doesn't offer a mobile Web browser robust enough to surf popular sites. I can say that Verizon makes surfing the Web on my mobile phone miserable, so I don't.
Google hopes to change the attitudes about mobile Web access. If it does stands to leverage its popularity on the Internet and start raking in the profits.
Google is no fool, it wants in.
source: http://blogs.pcworld.com/staffblog/archives/005352.html
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