Telecoms

Google Bids USD 4.6 Billion to Buy Mobile Phone Network

Google willing to invest in the mobile industry

By Elena Balan, Communications News Editor

27th of July 2007, 08:17 GMT

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Google has been keeping a low basis on intentions to develop their own mobile phone network lately. It now looks that the company now plans on buying one and is willing to put up to USD 4.6 billion for this.

Google might team up with smaller mobile-phone providers to develop the business according

to their own plans, instead of teaming up with a large telecom service provider. Such a partnership would make this company's search engine more popular and make huge competition for AT&T and Verizon Wireless too.

In the forthcoming auction for a US mobile phone network license Google is willing to bid the huge sum. Moreover, the company looks to adopt four types of platforms for this.

Google considers that consumers should benefit from "open applications" and have the chance of downloading and using any software, applications, content or services that they desire. It may sound great for their advertisement-based business, but not all developers might be so keen on the idea.

The company also recommends the use of "open devices" at a large scale, making it possible for consumers to use mobile phones with any wireless network that they might prefer. Google also looks into the adoption of "open services" and "open networks". This would mean that people will be able to buy wireless services from a 700 MHz licensee on a wholesale basis. Moreover, internet service providers should be able to interconnect at any point in this wireless network.

Google is the owner of the most popular Internet search engine. Their profits mostly rely on selling advertising space, which is not the case with other major networks in the US, such as Sprint, AT&T, Verizon and T-Mobile. These providers ask for a subscription from those who use their services, which would mean disastrous results if Google brought their ideas on the mobile phone market.

TAGS:

Google | Mobile Phone Network | Network | service provider | mobile phone

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