21 September 2007

Google as a telecom carrier

This item is most interesting, and adds weight to some speculation I blogged about earlier (see this, for example). If this happens as reported, Google begins becoming both a service provider and a transport provider. If Google does bid on (and win) spectrum in the upcoming auction, they have the ability to move further in this direction.

How does this play in the structural separation model?

Update (2007-09-24): Nicholas Carr posted this item on his blog, which raises some interesting questions, not so much for Google, but for the kinds of industry trends posited by John Hagel and others.

2 comments:

Kuang Chiu said...

Although Google’s multi-dimension strategy entering its auxiliary areas (transoceanic cable, mobile, WiFi, BISP, Google pay, youtube.com) not only sheds some darkness for telecom operators by increasing competition, it also sheds some darkness of its core advertisement service. If Google spends much more resources out of its core business, it may mean that the growth of its commercial revenue can not be as explosive as before by strong competition. However, I am looking forward to seeing whether this technology disruptive company can also apply a traditional strategy (requires ISPs to price down by threatening market entry) to squeeze cable club’s profit margin.

Google involving in ocean cable can be a defense strategy for cost down in lowering its transit expense of Internet data expense but mobile service in 700 MHz and Google’s mobile handset can be treated as offensive strategies to secure its searching service in mobile business.

Luai Hasnawi said...

Last April, Google officially published their new vision to the world TiPS (Google The internet Service Provider). However, after two days they said it was April's fool.

http://www.google.com/tisp/install.html

Check this link to see their new internet service.

Hope you enjoy it