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Google: We Come In Peace
Wireless Carriers: Go fall in a hole somewhere...
by Karl Bode Wednesday 17-Feb-2010 tags: competition · business · wireless · alternatives · Op/Ed · Google
We've discussed at length how products like Google Voice stand to revolutionize the wireless industry, by taking content and even dialing mechanisms away from the telcos, decimating the traditional idea of SMS and voice minutes, and potentially turning wireless carriers into dumb pipe carriers. The carriers' first reaction once they realize this is of course terror, which is why Google CEO Eric Schmidt has spent this week at the Barcelona Mobile World Congress trade show trying to ease carrier fears, and remind them that there's plenty of money to be made through cooperation and collaboration:

"Ultimately, these businesses will succeed to the degree that they stay end-user-focused," Schmidt said. "And the best partnerships start from that, and not from dividing the industry or restricting what people do." He added that the best partnerships are also the ones in which all parties involved make lots of money serving consumers. "We feel very strongly that we depend on the success of the carrier business," Schmidt said. "We need a sophisticated network for security and load balancing."

Of course carriers don't want to just run a network. They unrealistically want to be everything to everyone, offering network connectivity, content, and every service the consumer would ever want -- while directly soaking up all the ad revenue. The problem has been many carriers aren't particularly adaptive or innovative, so many of these offerings wind up being less than compelling. Despite the sweet talk, Google really does want the carriers to be simply dump pipes, and that's simply something most carriers will never concede to.

Sure, Verizon's now collaborating in a limited fashion with Skype and Google Android, but with the other hand they pay money to guys like Scott Cleland, whose full time job is smearing Google on Verizon and AT&T's behalf. Vodafone, Verizon's giant overseas partner, took Google's fig leaf and spent their time at Mobile World Congress complaining about Google being too powerful.

Collaboration with Google simply won't come without an ugly fight, and evolution is on Google's side. Fighting against the tide of open devices and networks is a losing proposition for wireless carriers. Inevitably wireless operators will simply be forced to do what Verizon has started doing and wind up making application freedom a luxury data tier, crafting wireless data plans that nudge user bills ever skyward, while also charging endlessly higher fees and higher ETFs.

Oh, and somewhere in there they'll have to focus on running a network.

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NeoandGeo

join:2003-05-10
Harrison, TN

.

The absolute worst thing for the consumer is to prevent the cell co's from becoming dumb pipes.

F*** Google.
myokitis

join:2004-06-19
Alexandria, VA

Ahmen

Agreed. Less potential profit resulting from fewer value-added opportunites would result in less capital available for network investment.
Nesis

join:2009-06-12
Apollo Beach, FL

Re: .

Did you read the article? Google wants the carriers to be dumb pipes and google wants to provide the content.
NeoandGeo

join:2003-05-10
Harrison, TN

Re: .

Sarcasm
Nesis

join:2009-06-12
Apollo Beach, FL

1 edit

Re: .

My bad.

TMMerlin
The Devil made me do it

join:2003-06-19
Oxford, MI
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said by Nesis:

Did you read the article? Google wants the carriers to be dumb pipes and google wants to provide the content.
Best thing that will ever happened to the Cell carriers is to get a kick in the Butt from Google or anybody else with the Mega"Bucks to dance the Mad Chicken on the carriers forehead !

I refuse to upgrade to a slick new smart phone becuase I immediately get screwed by the carrier and am forced to pay an extra $30/mo for data usage.

All I want is the slick new phone and it's internal apps and not use it for SMS/E-mail/surfing ...! I just want a great phone to make voice calls with .
--
Some people hear their own inner voices with great clearness and they live by what they hear. Such people become crazy but they become legend.
NeoandGeo

join:2003-05-10
Harrison, TN

Re: .

One of the only reasons I got a smartphone was so I could endlessly stream data intensive content whether I watch it or not.
Mr Matt

join:2008-01-29
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Don't forget the customers that want a handset with a large screen because they have vision problems. Why should they have to pay for a data plan if they do not need it. As I said in a previous post, I hope someone that has a documented vision disability, sues any carrier, under the Americans With Disabilities Act, that requires a data plan for a handset that has a large screen.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH
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Re: .

Ever heard of JitterBug? They solved that problem when they became an MNVO. They have their screen set so it shows the larger numbers, and menus on the screen, and they also have enlarged key-pads.
--
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TMMerlin
The Devil made me do it

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said by Mr Matt:

Don't forget the customers that want a handset with a large screen because they have vision problems. Why should they have to pay for a data plan if they do not need it. As I said in a previous post, I hope someone that has a documented vision disability, sues any carrier, under the Americans With Disabilities Act, that requires a data plan for a handset that has a large screen.
Unfortunately ... I don't think anybody really cares about that. Ever try to open a store door "outward" from a wheelchair ? or how about .. going to a public rest room with a handycap stahl and get caught inside the rest room unable to open the the door, again ?

Oh well ..
--
Some people hear their own inner voices with great clearness and they live by what they hear. Such people become crazy but they become legend.

Gbcue
Almost P.E.
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said by Mr Matt:

Don't forget the customers that want a handset with a large screen because they have vision problems. Why should they have to pay for a data plan if they do not need it. As I said in a previous post, I hope someone that has a documented vision disability, sues any carrier, under the Americans With Disabilities Act, that requires a data plan for a handset that has a large screen.
What law are they breaking? The charge you alot of money for something you don't need Law?
--
My Blog 2.0

OmegaWolf747
Vive la revolucion

join:2009-02-08
Royal Oak, MI
People still use cell phones for voice calls? Who knew?

I want the providers to just act as dumb pipes. As for Google being the content provider, only if they don't censor or restrict in any way.
--
Win Vista Home Prem x64 SP2, Intel Centrino Core2 Duo P7350 @ 2 GHz, 6 GB RAM, 1 GB ATI Radeon 4600 HD video, 453 GB HDD, Millenicom Wireless Internet
Austinloop

join:2001-08-19
Austin, TX
kudos:1
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Why believe Google?

Okay, this site regularly skewers multibillion dollar corps. It sometimes appears that Google gets a pass because they say they will do no evil. To that, I say BS.

Why should one trust what Google says anymore than what Verizon, or AT&T say? Just wondering.
Angrychair

join:2000-09-20
Jacksonville, FL
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1 edit

Re: Why believe Google?

Because Google's interests in this matter are aligned with the public's interests.

Make all the major communications industry players into dumb pipe providers and watch consumer costs plummet while corporate profits are brought back down into the stratosphere. (from the high earth orbit they presently enjoy) While at the same time forcing the providers to compete on what actually matters (price and speed) instead of customer lock downs.

The reason google terrifies the phone companies is because google makes it easy for us (the consumer) to do for free what the phone companies have been charging indulgent amounts of money for.
Austinloop

join:2001-08-19
Austin, TX
kudos:1

Re: Why believe Google?

Yep, I remember how Google follows through with their public interest, remember the cell phone spectrum auction? Glad you have faith in them, I have very limited faith in what any corporation says, including Google.

Have a good day, sir.
Angrychair

join:2000-09-20
Jacksonville, FL

Re: Why believe Google?

Sorry, I'm not seeing any connection.

Could you clarify?
Austinloop

join:2001-08-19
Austin, TX
kudos:1

Re: Why believe Google?

Guess you have forgot that google was going to bid in a cell spectrum auction, then disappeared. IMHO, if they want to play in the cell phone market, then be a cell phone company.

But then I have no trust of google, or most corps.

Gbcue
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Re: Why believe Google?

said by Austinloop:

Guess you have forgot that google was going to bid in a cell spectrum auction, then disappeared. IMHO, if they want to play in the cell phone market, then be a cell phone company.

But then I have no trust of google, or most corps.
Why would they bid on something they don't need? They aren't a cell phone carrier. That would take spectrum away from those companies who can actually use it, like real cell phone companies.
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Angrychair

join:2000-09-20
Jacksonville, FL
I'm still not seeing the connection.

What does google not bidding up spectrum frequencies have to do with google's alignment on this issue?
Austinloop

join:2001-08-19
Austin, TX
kudos:1

Re: Why believe Google?

Because goo acted like they were going to bid and then backed out, so why would this new enterprise be any different?
Angrychair

join:2000-09-20
Jacksonville, FL
Reviews:
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Re: Why believe Google?

Well google voice and several other applications similar to it (skype for one) already exist.

However, I think you're confusing what my point was.

In this case google's interests are squarely aligned with consumer interests (unfettered access and network neutrality) whether they actually make use of the open access once it's there or just steer policy in the right direction.
Austinloop

join:2001-08-19
Austin, TX
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Re: Why believe Google?

You are certainly entitled to your belief in the wholesomeness of the current goo proposition, however, time will very probably prove that goo is in it only for the money, the hell with the consumer interests. I hope you are right, but I really doubt it.
iansltx

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If I remember correctly they were trying to bid up the price to include open access specs. Nobody really expected for them to become a cellular carrier anyway...doing so would alienate them from all the other carriers. Much easier to just invest money in Clear WiMAX and other such ventures.
InfinityDev

join:2005-06-30
USA
Google did actually bid. They didn't win, though.

»news.cnet.com/8301-10784_3-9900190-7.html
Austinloop

join:2001-08-19
Austin, TX
kudos:1

Re: Google bid but did not win.

Mainly because they didn't want to win.
Skippy25

join:2000-09-13
Hazelwood, MO

Re: Google bid but did not win.

Right and I wasn't a 4 time national collegiate wrestling champion because I did not want to win.

Poison

@sigmanet.com

No actually they got what they wanted.

They got the rules bent so that greedy carriers like Verizon would have to open up their airwaves a bit more.

Verizon would never allow for phones w/o their ugly UI's or forced content stores without a little outside pressure.

Every new PR move companies like Verizon make today are in affect a consequence of previous action by others. They are not innovative or customer friendly by any means.

You can hate Google all you want, but the truth of the matter is that as a consumer we will side with the lesser of the two evils. Verizon and Google are both multi billion dollar companies, but one of them tries to gouge our wallets each month while the other gives us free email, social networking and alternative calling/SMS services.

Pick your poison.

KrK
Heavy Artillery For The Little Guy
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If you had followed that saga closely, Google was being very clever.

They were implying they might jump in on the Auction if certain openness rules were adopting by the FCC for the spectrum auction (Ie like unlocked phones and the like.)

Thanks to Google, consumers got some minor concessions but largely the auction proceeded with minimal changes. Google didn't bid.

No problem. It was still a good move.
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini
eco
Premium
join:2001-11-28
Wilmington, DE
They did bid in the spectrum auction, they just didn't win... You do know what an auction is right? The highest bidder wins. The telco's just bid more than them. There were certain conditions that were placed on the winners of the auction as a result of Google's bid.

Fred is dead

@swbell.net

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said by Angrychair:

Because Google's interests in this matter are aligned with the public's interests.

Make all the major communications industry players into dumb pipe providers and watch consumer costs plummet while corporate profits are brought back down into the stratosphere. (from the high earth orbit they presently enjoy) While at the same time forcing the providers to compete on what actually matters (price and speed) instead of customer lock downs.

The reason google terrifies the phone companies is because google makes it easy for us (the consumer) to do for free what the phone companies have been charging indulgent amounts of money for.
Explain to me how reducing the carriers to dumb pipe companies is going to make them drop prices? If you remove their other walled garden sources of revenues, wouldn't you expect them to charge more for the base service to make up for it?

Really, in the smart phone market, carriers are dumb pipes, except for the division between phone and data minutes. Since they don't have the walled garden revenue, they generally charge more for dumb internet pipes to smart phones to make up for lost walled garden revenues. When LTE rolls in, this distinction may be reduced, at least on cell to cell calls.

Fred
Angrychair

join:2000-09-20
Jacksonville, FL
Reviews:
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Re: Why believe Google?

No more outrageous SMS profits and no more outrageous minute restrictions to name two.

And they'll charge as much as they can get away with to be sure. Which is why it's important for customers to easily be able to switch carriers while easily porting everything important to them. (where services like google voice come in)

True easy and free competition for the customer is what drives down profits, and while google can only impact a small part of the equation everything is better than nothing. (which is why I noted profits back in the stratosphere rather than truly down to earth)
Austinloop

join:2001-08-19
Austin, TX
kudos:1

Re: Why believe Google?

I don't use texting and what outrageous minute restrictions are you referring to? I haven't went over my minutes in years. In fact I have quite a few carryover minutes.
eco
Premium
join:2001-11-28
Wilmington, DE
The idea is that The carriers use their 'wall garden' content as a means of luring customers. Similar to how they use cell phone exclusivity agreements as a means to lure customers.

If the carriers were simply dumb pipes without other methods to lure customers they would have to compete on price, speed and quality of service alone. This is part of the reason many other countries ban, or limit to very short periods of time, exclusivity agreements because they are anti-competitive in the sense they reduce price competition.
jimbo5dsl

join:2005-04-12
Wantagh, NY
Google's interests are for Google only - they are aligned only with themselves. Think about the privacy issues over the years.
--
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NeoandGeo

join:2003-05-10
Harrison, TN
They are just as bad. But for the time being they are at least bringing to light the BS that is the cell phone anti-competition monopoly.

This does not forgive Google, however.

Romney2012
Defeat Obama 2012-Chg we can believe in
Premium
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USA
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said by Austinloop:

Okay, this site regularly skewers multibillion dollar corps. It sometimes appears that Google gets a pass because they say they will do no evil. To that, I say BS.

Why should one trust what Google says anymore than what Verizon, or AT&T say? Just wondering.
You are right. All corporations, including Google, are in it strictly for the money. The "Google can do no evil" is just extra good PR by Google. In fact, they are the heir apparent to Microsoft to becoming the next abusive monopoly that will sooner, rather than later, become a complacent behemoth looking to be the next cash cow.

tubbynet
reminds me of the danse russe
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join:2008-01-16
Chandler, AZ

Re: Why believe Google?

said by Romney2012:

You are right. All corporations, including Google, are in it strictly for the money. The "Google can do no evil" is just extra good PR by Google. In fact, they are the heir apparent to Microsoft to becoming the next abusive monopoly that will sooner, rather than later, become a complacent behemoth looking to be the next cash cow.
while you and i have our disagreements (quite often, actually), this is the truth. google has their own intentions with every service they provide. what *exactly* are they doing with your voicemail, sms message, email, etc? they bought out doubleclick and even now there is speculation that they are offering the "think big with a gig" to perfect and target behavioral advertising via mixed media.

google is aligning with the "public interest" because it allows ad revenue, clickstream data, and other "information sets" to be taken from the carriers hands and placed into their own. google makes money from doing so - why wouldn't they support making their own money?

q.
--
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highjinx

join:2000-10-12
Alturas, CA

Re: Why believe Google?

Well said Tubbynet.

TamaraB
Question The Current Paradigm
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said by Austinloop:

Why should one trust what Google says anymore than what Verizon, or AT&T say? Just wondering.
Because I get a lot of useful services from Google for FREE; like calendar/contact/iphone sync (Apple charges), Google Voice/SMS free (AT&T charges), Picasa Web photos in the cloud Free, Google Docs in the cloud Free.... I can go on, but bottom line is Verizon, Apple, and AT&T have all overcharged me, while GOOGLE has never ripped me off.

Bob
--
Would you ever go over to Czechoslovakia, and marry me daughter for me?"

See 14 replies to this post

baineschile
2600 ways to live
Premium
join:2008-05-10
Sterling Heights, MI

Remember

Nothing in life is free. Google will exchange your dollars for your time, which isnt always a good trade.

allsfair

@sbc.com

dumb pipe...dumb search engine

I could see this as a win for consumers... Carriers are dumb pipes and Google agrees to remain a dumb search engine. Google has no more business branching out than the carrier's have in providing content. Google should be willing to jump on this offer.
tdouglas22

join:2001-09-25
Memphis, TN

Good VS. Evil

I think it might be better if, for one, we stop painting companies as being good/evil. They are ALL in it for the money and there is nothing wrong with that. The problem is that some seem to be MORE focused on profit and not as concerned about customer service.

I think Google understands that if you give the people what they want, you will continue to rake in the money. Google also seems to be more willing to adapt to new tech and products.

The cell providers seem to be intent on keeping things the way they are and not making adjustments. Which is understandable because cell companies are NOT like Google. They're not really in the business of searching for new tech to improve the customer's experience. But keep in mind that cell phone companies have evolved from old money practices and business men/women from a time long gone. Google is not from this line of thought. It's not that Google is a hero and cell companies are the arch villain. It's just that one company is built to adapt and fit into today's world. The other is still clinging on to an older way of making money.

Neither one is good or evil so let's stop approaching them from that perspective.

NPGMBR

join:2001-03-28
Arlington, VA

Re: Good VS. Evil

Oh please. Google is no better than anyone else. The entire basis of Google's push to get everyone to open networks or content is so Google can control it.

This is the exact bait and switch game Google played with on-line content providers only Google didn't have to convince them to let Google steal their viewers eyeballs, Google just hijacked them.

The difference is that Google cant do that with the ISPs so Google is trying to convince everyone that everything should be free and open for Google to exploit that information and thus rake in the cash then turn to the ISPs and tell them they need to change their business models when they start losing ad revenue to Google!

People had better wake up. Google is all about gobbling up your personal information and selling it to others and giving you a pat on the head in return. You only have to look at all the privacy concerns popping up with every new product Google launches.
axiomatic

join:2006-08-23
Tomball, TX

Unrealistic

The carriers desire to keep networks in the "they work by magic" category is unrealistic. Not all of us are network dummies and will use networks however we please (of course within the letter of the EULA.)

But Google signed no EULA, only us end users are restrained by those.

The carriers are trying to squash corporate innovation and thats a "no no."
Sammer

join:2005-12-22
Canonsburg, PA

Re: Unrealistic

said by axiomatic:

The carriers are trying to squash corporate innovation and thats a "no no."
Thinking about all the corporate shills who like to point out how copyright infringement is against the law, not only is it a "no no" for carriers to squash corporate innovation it's also illegal under antitrust laws.
brianiscool

join:2000-08-16
40303
kudos:1

Excellent

Google should offer free VOIP for cell phones. In return of installing a Google-VOIP-Wireless router they could take over the market overnight. Where other customer's can connect in your area for VOIP service.

NOCMan
MacChatter
Premium
join:2004-09-30
Colorado Springs, CO

I'd love to be a dumb pipe carrier

Focus on doing what I do best, provide connectivity, only investments I ever have to make are to ensuring the network runs, works when wanted, and is fast as hell.

Plenty of profit in doing just that.

See 6 replies to this post
tmc8080

join:2004-04-24
Brooklyn, NY
Reviews:
·Optimum Online
·Verizon FiOS

on smart phones

Grabbing consumers for upwards of $30 a month for data service which is *mandatory* on many smart phone post paid plans should be enough for the carriers to supply up-to 10mbits of throughput per subscriber once upgrades take hold. This is enough for, voice data and streaming of video.. albeit in best effort style service & wouldn't be flawless everywhere in the footprint. Not even Verizon can guarantee their footprint's throughput in 100% of possible locations in their "red" footprint.

What remains to be seen is a PREPAID option with smart phones for $50 and under which includes voice, data and apps which can utilize the same kinds of features post paid customers do. Up until now it's been a tradeoff between full featured phones on post paid and feature poor phones on prepaid (regardless of whether the phone is subsidized or not by the carrier/partner networks or companies).

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