Recent news that Sprint is not going to work with Clearwire to build out a WiMAX network only added to the rumors I have been hearing about Google acquiring Sprint Nextel. On the surface it seems like this would be a bad move for Google but in reality the world’s leading search engine has become so much more than just a website to go to when you want to find a trinket of information… The company now needs a wireless network to allow it to grow in the mobile search and related spaces such as watching YouTube videos on the subway.
Let’s look at Google from a philosophical level. The company has built almost everything from scratch in its past and present. Computers, operating system, web server software and more. Google likes to have complete control. In a way this is not unlike Apple.
So one wonders if the mobile search market is so crucial to the company’s future, can it rely solely on the Open Handset Alliance to get into the mobile search market?
Look at it this way... When Google decided it was serious about the video space it launched a new tab titled video on its home page. At a certain point the company realized YouTube was too strong a competitor and Google threw in the towel and purchased the video competitor.
So one wonders if history may indeed repeat itself and Google will start with the OHA and decide soon they need an acquisition to boost their presence in the space.
Of course one problem with a Sprint Nextel purchase is that the company’s network isn’t GSM-based meaning devices will have to have multiple radios to be used around the world. But this is a minor problem; let’s look at the more serious issues such a transaction would pose.
1) Google gets into the messy business of telecommunications. I don’t mean to say Google’s day job is easy but the telecom market gets it involved with government agencies like the FCC on a more regular basis. Like many other large telcos the company will have to spend more and more money lobbying and technology differentiation may be less important than government regulations in ensuring future success.
2) Getting seriously into the telco business and having a corporate motto “Don’t be Evil,” may be tough to pull off.
3) Retail stores. Google’s investors love the fact that Google has a massively scaleable business model which can grow with the addition of servers. Imagine if Google had a slew of retail stores to deal with around the country (or world?). Google’s valuation would likely take a major hit.
4) Open Handset Alliance: One would imagine if Google owns its own network, other network operators would not be too happy to be part of the OHA. This could slow progress for Google getting on the handsets of other wireless service providers.
5) A purchase of Sprint Nextel would make Verizon and AT&T go crazy and they would make life even more difficult for the search leader. Could they make life any more difficult than they do today? Maybe.
But for a company that craves control as much as Google there may still be a way to acquire Sprint without destroying their relationship with other providers.
You see, Google doesn’t really need the messy wireless phone business. What they really need is platforms which will allow them to display ads embedded in their services such as maps, videos, etc.
Google could buy Sprint Nextel and in a complicated maneuver spin it back out as a different company (perhaps a nonprofit) which agrees to work more closely with Google to display ads and distribute its applications. This would allow Google to stay somewhat independent and work with other service providers worldwide.
Another more drastic move would be to buy the beleaguered wireless phone company and start giving all service away for free. In addition the company could reinitiate the ClearWire talks and work with this company and others to blanket the world with a free (or at least ad-subsidized) WiMax network.
This sort of move is logical from a local search perspective. Imagine Google being able to light up your phone with information relative to where you happen to be. Think about the phone as a virtual tour guide. When you get a phone call from someone, the phone could pull up a MySpace or orkut page before the phone even rings. If the caller ID is blocked when receiving a call, you could see the results of a web search of the phone number as the phone rings. When you are walking past a coffee shop a coupon for 10% off any drink with a European sounding name could be displayed on your phone.
It gets better… McDonalds could flash ads for $2-off any meal with more than 1,000 calories in total. Of course I am kind of kidding about this last point but we should all realize the web is beginning to have more of our preferences stored in it somewhere and Google could indeed ferret out our likes and dislikes and match them up with ads from relevant companies in a way we never thought imaginable.
I for one would be very excited to see what a Google phone might look like five years from now. Sure Apple is the reigning king of design but Google is the same in the world of information organization. I do wish someone would cross the chasm between my desires and my surroundings. I think Google with a cell phone provider under its wing can be the company to pull this off.
So do I think Google will make such an acquisition? Maybe. If the search leader is going to bid on wireless spectrum it may make more sense to just buy a service provider and rapidly accelerate their mobile initiatives. If they were to make this purchase, I would see them rapidly rolling out free service or at least heavily-subsidized service and making life extremely difficult for the likes of AT&T and Verizon Wireless.



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you are incorrect in your statement that google has created everything in-house.
many of their technologies were bought when they acquired othr co.s i.e. their killer alogorithms (for search) came with an acquisition of a co. in santa monica several years ago....i forgot the name.
i am very familiar with both google and yahoo. what most people don't realize about google is that every one of their technologies/products that they developed in-house has flopped in terms of genertating any revenue. or, they haven't been able to develop a revenue model for it. yahoo may be less sophisiticated technoogically, but that at least have multiple revenue streams. too bad for them that goog's search algorithims were better and they ran off with the show.
however, my friends at yahoo say the game has not ended and they are working toward to returning to their technology roots.
thank you for bringing this up! roughly one year ago i began saying on assorted blog threads (techcrunch et al) that google should acquire a wireless carrier and initially felt that tmobile's us operations made the most sense (wifi outlets/modes, backdoor to music and media distribution, channel sales force through their commercial operations etc)...still seems to make sense to me, though sprint is far more cash strapped and is way way way cheaper as a prospect, and still offers commercial channel sales, wifi distribution opportunities and retail presence prospects...
It is somewhat surprising that Google is spinning off its own mobile OS, but the fact that Android is linux makes some sense.
If Google purchased Sprint, they wouldn't create a special advertising platform - remember they are trying to build a software platform that anyone can build applications for, and the advertisements come with the applications and services. I don't think they are building an operating system where the advertisements are inherent. But I could be wrong.
Anyway, I think they would create a revenue sharing model and a method of leveraging subscriber info in their advertisements. Other carriers could follow suit. They would drive the telecom industry forward by giving Sprint a way to differentiate itself: to advertisers, by offering more targeted Google ads, and to customers by offering cheaper plans (due to better advertising revenue).
But wait, I think T-Mobile is already willing to do such a thing. If T-Mobile doesn't pollute their Android phone offerings too much with their own proprietary web services, Google doesn't necessarily need Sprint. T-Mobile could cooperate with Microsoft, Facebook and Yahoo! by integrating subscriber demographics into their respective online advertisements as well, but Google is larger and would benefit the most. The Android platform would win.
you cant be serious. There are so many holes in this I dont know where to start.
One big one, not being GSM based. You refer to this as minor. If a global brand like Google is going to make a truly paradigm shifting play, they are not going to do it for N.A. only.
But, playing along, did you think about Sprints alliance with the cable providers? What does a Comcast (via Sprint)/ Google alliance bring to the table?
Eitherway, does Microsoft then go out and buy AT&T?
Where does it end?
WTH are you talking about? So gmail was acquired and its a flop when it comes to revenue?
Just more effin' rumors to manipulate the markets... Nothing new to see here.
Rich, I think you are way off base on this one. Sprint is already cooperating in Google's Open Handset Alliance, so why would Google need to buy them? Google doesn't want to be saddled with operating a network, and they are smart enough to stick to their software strengths. More on my blog at http://ikeelliott.typepad.com/telecosm/2007/11/google-buying-a.html
I have heard from a high ranking News Corp insider that the next News Corp purchase my be UrTone. They say it’s going to be bigger that Jamba, it is a wireless platform with custom ring tone technology never seen before and a patent app that ‘if granted’ will cause Apple’s iTunes ring tone offering a BIG problem, it will also offer the social networking to mobile phone technology, ads to mobile and already has deals with Warner Music and Universal. It’s next to be snapped up before it is well known and the price is hiked.
at the moment, my program has it, and one other panel, inside a window. it is position so that it overlaps the corner of the other panel. the BackColor property is set to transparent, and its Border to FixedSingle. i can see though it perfectly over the window (which has a tiled BackGroundImage), but i can’t see the other panel through the part that it overlaps. i can only see the window (its parent) through it.
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I think google will not bid for this why would Google need to buy them?
Well, there are a few reasons... Like direct access to customers in an environment where service providers have threatened to charge them extra to deliver their content.
It's just a rumor, in fact, it feels more like speculation than anything backed by a reputable source; still, there's a Google / Sprint buzz getting a lot of play this morning. Rich Tehrani is reporting that Google is considering an acquisition of Sprint Nextel in order to grow its mobile business.
I thought google will not bid for this why would Google need to buy them?
I thought google will not bid for this why would Google need to buy them?
I thought google will not bid for this why would Google need to buy them !
Google is growing by buying his opponents.
It's just a rumor, in fact, it feels more like speculation than anything backed by a reputable source; still, there's a Google / Sprint buzz getting a lot of play this morning. Rich Tehrani is reporting that Google is considering an acquisition of Sprint Nextel in order to grow its mobile business.
Just more effin' rumors to manipulate the markets... Nothing new to see here.
But for a company that craves control as much as Google there may still be a way to acquire Sprint without destroying their relationship with other providers.
you are incorrect in your statement that google has created everything in-house.
many of their technologies were bought when they acquired othr co.s i.e. their killer alogorithms (for search) came with an acquisition of a co. in santa monica several years ago....i forgot the name.
Google is number one and will be forever I think.
Hi prefabrik,
Google is number one and will be forever I think. Lets dont forgot that this will cause problem on one day google will start his monopoly in search engine. b frank we can say its actually started already.
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Yes I agree with JP-P. Google will rule the internet world.
The world needs another power to encounter google.
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I thought google will not bid for this why would Google need to buy them !
you are incorrect in your statement that google has created everything in-house.
many of their technologies were bought when they acquired othr co.s i.e. their killer alogorithms (for search) came with an acquisition of a co. in santa monica several years ago....i forgot the name. Thank Youu mmf tmcnet
The world needs another power to encounter Google.
I thought google will not bid for this why would Google need to buy them! really this is not big deal for google but think in another way if google aquires that one then they create another business platform for website owner i mean SEO's..
The world needs another power to encounter google.
The world needs another power to encounter Google.
Google is growing by buying his opponents.
I think google will not bid for this why would Google need to buy them?
good article.
Can someone give me an idea whether or not I should go for a smart phone or just use a more stylish phone and wait for some better technology? I am on the Sprint network, and was referred to http://www.sanyowireless.com , but I'm not seeing any options that look like smart phones. I don't need an MP3 player or a camera, I'd rather have a phone that is lighter and easier to carry. Any recommendations would be welcome.
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Google is number one and will be forever..
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Anyway, I think they would create a revenue sharing model and a method of leveraging subscriber info in their advertisements. Other carriers could follow suit. They would drive the telecom industry forward by giving Sprint a way to differentiate itself: to advertisers, by offering more targeted Google ads, and to customers by offering cheaper plans (due to better advertising revenue).
thanks all the editor
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If Google purchased Sprint, they wouldn't create a special advertising platform - remember they are trying to build a software platform that anyone can build applications for, and the advertisements come with the applications and services. I don't think they are building an operating system where the advertisements are inherent. But I could be wrong.
will release an update to a burning question about its future. Meanwhile, here are some thoughts.
Well, there are a few reasons... Like direct access to customers in an environment where service providers have threatened to charge them extra to deliver their content.
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I thought google will not bid for this why would Google need to buy them?
At some point, twitter will have to focus -- and it looks very much like it's primarily book marketing, advertising and public relations crowd that's using it. I find the linear display is quite shallow.
The world needs another power to encounter google.
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I thought google will not bid for this why would Google need to buy them?
Anyway, I think they would create a revenue sharing model and a method of leveraging subscriber info in their advertisements. Other carriers could follow suit. They would drive the telecom industry forward by giving Sprint a way to differentiate itself: to advertisers, by offering more targeted Google ads, and to customers by offering cheaper plans (due to better advertising revenue).
thanks all the editor
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WTH are you talking about? So gmail was acquired and its a flop when it comes to revenue?
Anyway, I think they would create a revenue sharing model and a method of leveraging subscriber info in their advertisements. Other carriers could follow suit. They would drive the telecom industry forward by giving Sprint a way to differentiate itself: to advertisers, by offering more targeted Google ads, and to customers by offering cheaper plans (due to better advertising revenue).
thanks all the editor
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They would drive the telecom industry forward by giving Sprint a way to differentiate itself
Well, there are a few reasons... Like direct access to customers in an environment where service providers have threatened to charge them extra to deliver their content.