Google Inc (NASDAQ: GOOGL) (NASDAQ: GOOG) is moving fast to implement its wireless plans, announcing Project Fi, a potentially lethal rival to the likes of Verizon Communications Inc (NYSE:VZ) and AT&T Inc. (NYSE:T). Project Fi, Google’s attempt at wireless business, is competitively priced, costing $20 a month for a basic voice and text service. In a stark departure from industry norm, Google allows you to continue using data purchased in the previous month in case you didn’t exhaust it.
Google Inc (NASDAQ:GOOGL) hopes to drive lower mobile phone rates and better wireless connectivity through its Project Fi service. The company said deployment of the wireless service will be in a small-scale, but its ripple effects are expected to reach far, perhaps propelling massive industry changes.
Google attempts to define target
Google may not make much money from its wireless business directly, but it will boost its other operations, especially mobile penetration. The company has preferred to use the network infrastructure of Sprint Corp (NYSE:S) and T-Mobile US Inc (NYSE:TMUS) to roll out its wireless service. The choice of Sprint and T-Mobiles is seen as another strategy by Google to clearly define its targets – Verizon and AT&T.
Project Fi pricing
Google Inc (NASDAQ:GOOGL) has come up with a way to impress its wireless subscribers. The company is able to pay back users for the data they haven’t spent at the end of plan duration. Project Fi will cost $20 per month for a basic plan that includes voice and texting. For an extra $10, users get a gigabyte of data, which can be reused in case a month ends before you exhaust it all.
Not in pursuit of dollar
Google looks set to shake the wireless industry, but it remains to be seen whether the company would be able to upend wireless market. Analysts agree that Google is actually not out to make more money in its wireless business. Instead, the company is seeking to drive changes in wireless industry. As to whether it succeeds is a different story.
Google hopes that its aggressive drive in the wireless space would see other providers copy certain aspects of its wireless service, thereby expanding whatever changes it is making in the industry. Some of the changes Google is expected to drive are Wi-Fi voice calls, cloud storage of phone numbers, encrypting of calls and automatic connection to thousands of free Wi-Fi hotspots.
Google is offering its Project Fi service on its Nexus 6 smartphone only. Nexus 6 costs about $649, a price that could also put off many people trying to test Project Fi.