Google climbed 2.3% on Monday’s market as plans to launch U.S network were announced.
Competing against traditional telecom providers in the U.S, Google will launch a small mobile operation using existing networks, as a MVNO or mobile virtual network operator.
The reason behind the move is due to Google’s frustration with telecoms providers that limit broadband reach and, in Google’s opinion, lack innovation. Google hopes that these companies will learn from the tech company’s ideas. In doing so, Google also hopes to expand its user base as providers reach further and the general population focus on the mobile phone as the hub of all communication.
Sundar Pichai, Google’s senior vice-president of products, spoke at the Mobile World Congress in Barcelona; “We have always tried to push the boundaries of what next. It is a project we are doing. We don’t intend to be a network operator at scale. We will do it at a small enough scale and hopefully people see what we are doing and carrier partners, if they think ideas are good, can adopt them,” as reported in the FT on Monday.
This is not Google’s first venture into wireless operations; rural areas will start to see Google’s solar-powered gliders overhead in the next few months to service these remote locations, and Google’s super-fast Fiber broadband product is now in more than 30 U.S cities.
In other news, Google also plans to launch a new digital wallet system to join Apple Pay and more recently, Samsung Pay which was released with the new Galaxy S6 launched on Sunday last. Google’s newest pay system will be slightly different, offering the base software through an API inside Android. This pay system is in addition to Google Wallet on Andriod that already enjoys success.
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