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What Will Google's Wireless Service Look Like?

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What Will Google's Wireless Service Look Like?

The Wall Street Journal reported that Google Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) is likely to unveil its latest product offering later Wednesday — its own mobile phone service. The company has been discussing the possibility of rolling out a wireless service since the Mobile World Congress in Barcelona, but the announcement could mark the beginning of a new era in wireless as competitors will be bracing for stiff competition.

Piggy-Back

The Google wireless service is expected to use the existing Sprint Corp (NYSE: S) and T-Mobile networks in order to serve its customers. As customers move around, the service will access whichever network has the strongest signal. This feature alone has been highly anticipated as it is likely to offer a more comprehensive coverage base. To begin with, only users who have a Nexus 6 phone will be able to access Google's service as the device will have the ability to switch between the two networks.

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Lowering Customer Bills

However, Google's new service is likely to make an impression on customers in a way that most other services aren't - by lowering prices. The new offering is rumored to charge users only for the data they actually use, rather than making customers pay for a block of data which expires at the end of the month as most traditional carriers do.

Additionally, Google's wireless network is expected to make use of Wi-Fi networks when they are available to lower customer's usage needs. Phone calls and data could be automatically routed through an internet connection, thus reducing customers' bills.

 

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