Google Vs. The Wireless Industry

This is huge. Absolutely huge! Google’s idea of passively attacking wireless carriers with Android is working with Verizon Wireless, the number two carrier in the US, announcing its decision to open its network to other devices and applications as long as they pass the company’s certification test. Granted Verizon is one of the first carriers to get the latest handsets, but you could get access to even more handsets, such as the ones from HTC, in the near future, plus additional applications. Of course, Verizon isn’t crediting Google for its decision, but isn’t it obvious by now? The wireless industry that has been closed for decades is suddenly open to being open. Coincidence? I think not.

Naturally, Verizon — and I presume others will follow shortly — are gradually opening on their terms to prevent Google from taking over the mobile advertising market without taking their share. It’s understandable. However, they need to admit the impact that Google has had on them. It was only four weeks ago when Google announced Android. The timing is not a mere coincidence. It’s evident that Google is winning hands down, or at least is frightening enough to shake the wireless industry singlehandedly. Now that’s a company.

As wireless carriers run around scared, consumers are ultimately going to reap the most benefits. With more applications and handsets coming our way, that’s a grand reason to get excited. Not to mention, Google is another winner that’s going to have serious control over the wireless industry with its sales force.

Unfortunately for wireless carriers, though, monetizing such initiatives is going to be a struggle. They can’t expect to spend billions investing in their infrastructure, completely open the network, and compensate for it through advertising. There’s only so much advertising that consumers can handle, so carriers will have to be careful. Ultimately, expecting them to open their networks and drop their rates is silly. It’s never going to happen. They need a steady source of revenue that can keep their bottom line stable in various economic conditions. Considering the advertising industry’s unstable nature, carriers won’t be betting a substantial amount on them.

Either way, Google has been successful in making carriers rethink their game. Not only has the advertising giant benefited itself, but it also made sure consumers came out winning in the end as well. Of course, handset makers are also fairly thrilled. In all cases, it’s a win-win-win situation. For Verizon, let’s give it some time to make up its mind.

[Gundeep Hora]

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