Google Inc (NASDAQ:GOOG) is in the process of creating a global network of mobile service that will allow Americans to use their phone at no extra cost while travelling. Telegraph U.K reports that the giant social network is currently engaged in talks with Hutchison Whampoa with a view of signing a wholesale access agreement that would have a shakeup impact on the US mobile market.
No Additional Costs
The search giant is looking to create a global network that will allow American’s travelling abroad not to incur any additional cost on calls texts and data. Linking with Hutchison is part of a larger plan to bring the mobile service to the UK, Ireland Italy among many more countries from where the service provider operates from. Google Inc (NASDAQ:GOOG) is believed to have gone with Hutchison because the service provider has been vocal against roaming charges.
Google Inc (NASDAQ:GOOG) is also in the process of launching a mobile network that will rely on mobile masts and infrastructure built by other wireless companies both at home and abroad. Industry analysts expect the company to use this project to pressure pricing by major mobile operators. The search giant may also use the project to encourage operators to invest in new technology aimed at improving mobile connection via Wi-Fi networks.
Google Fiber is another project that is coming up pretty well, allowing the company to expand fiber networks to cities that have lagged behind in terms of internet infrastructure. However, sources say that Google Inc (NASDAQ:GOOG) is not in the process of launching a mobile network in Europe as competition there is relatively stiff and authorities are already set to crack on roaming charges.
Google Inc (NASDAQ:GOOG) entering the telecom space in Europe should be feared by other companies operating in the region as this may end up attracting Apple Inc. (NASDAQ:AAPL) into the wireless space. Apple is believed to be trying to do away with Sim cards replacing them with software that would allow users to select the best network based on prices, a move that should weaken relationships between mobile operators and customers.