Market Overview

Google's Plan To Sell Wireless Data Plans 'Directly' To Consumers


Google Inc. (NASDAQ: GOOG) (NASDAQ: GOOGL) is preparing to sell its own wireless voice and data plans “directly” to consumers, three people familiar with the plans reportedly told The Information.

Google is expected to reach an agreement to buy wholesale access from Sprint and T-Mobile’s mobile data networks, and then resell it to its clients, thus becoming a mobile virtual network operator (MVNO).

"We see this as yet another Google step toward direct competition with the carriers," The Information wrote. "In our experience, underutilized carriers tend to see resale deals as good news until they become too successful, at which point the carrier in question tends to take steps to make it tough for the reseller to continue to compete. Should this typical pattern play out with cash rich Google, we wouldn’t be surprised to see them decide to build their own network."

Apple Inc. (NASDAQ: AAPL), which once planned on creating its own MVNO, but then desisted, may also be impacted by this decision. Apple is seeing increased competition from Google in mobile-related areas, as the company continues to pair up with the largest wireless carriers in the United States.

News broke this week about Google engaging in exclusive negotiations to acquire Softcard, a mobile payments platform jointly owned by AT&T, Verizon and T-Mobile.

Moreover, Google joined forces "with Fidelity to invest $1 billion into SpaceX to reportedly help the company build a satellite-based wireless data service capable of reaching billions of people who now lack access to it."


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Posted-In: AT&T MVNO Softcard SpaceX SprintNews Rumors Tech