Verizon and AT&T have long been rivals battling for the lead in market share in the United States. The tier 1 carriers on the lower end of the market, T-Mobile and Sprint have been doing their best to compete for pre-paid and post paid subscribers but haven’t historically been able to come close. So it should come as no surprise that when tech giant Google decided that they wanted to enter the wireless carrier market, Sprint and T-mobile decided to help.
In addition to their traditional business, Google has broken into (and dominated) much of the the mobile space with Android and its own mobile phones, started taking market share as an ISP and VoIP phone service with Goggle Fiber and Google Voice. For it’s next initiate, to become a player in the wireless market, Google could either invest billions in building out a nationwide network for cell towers OR partner to achieve their goal.
Reportedly, Google has negotiated to purchase data service from Sprint and T-Mobile for for just $2 per gigabyte. This will allow them to repackage and resell mobile access along with their other services at prices well below Verizon and AT&T. Competitively speaking his price advantage combined with the brand machine that is Google could and should give Verizon and AT&T pause. When carrier compete, the customer wins so I know I for one will be keeping a close eye on this new offering as it develops.
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