Why Google’s plans to become a wireless carrier do not bother current carriers

Google Corporation, if you can put it that way, and the Swiss, and the reaper, and igrets on the dude - now the company's reserve funds help her to occupy new niches. Space exploration is one of these niches, but there are more mundane plans, for example, to become a wireless operator. Rather, the virtual mobile operator , MVNO.

The Corporation of Good plans to buy back network resources (bandwidth) from Sprint and T-Mobile telecom operators and resell the service for its own clients under its own brand. There are quite a lot of virtual operators in communications that work in a similar way, in the USA - Cricket Wireless, MetroPCS, Pure Talk, Republic Wireless and many other companies. But it is Google that requires special attention, according to The Wall Street Journal , because the corporation already has too much power, so to speak.

For this reason, a special clause is specified in the agreement with Sprint, in which the company owning the network gets the opportunity to discuss the future implementation of the contract if Google has a large number of users. It’s still unclear how things are going with T-mobile, but it’s probably possible that this agreement is also spelled out in Google’s contract with Google.
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About the fact that Google is going to become a virtual telecom operator, they wrote in The Information , and now it is clear that the corporation plans to work very actively in this area.

From the side, Google’s plans look very ambitious, and some experts even fear that such a large corporation will enter the wireless market. How to give into the hands of a company that is experimenting with free Wi-Fi networks (in the form of balloons - Project Loon) and high-speed wired access to the Network?

However, there is really no great danger. Even Sprint precautionary, already mentioned above, may not be used. The fact is that it’s unlikely that Google’s virtual mobile operator will really get too many users. The same high-speed wireless Internet, the Google Fiber project, is developing too slowly to threaten any fixed-line operator. Most likely, the same will happen with the telecom operator from the “Corporation of Good”: at the very beginning it is planned to begin work in a limited number of cities. In this case, some technical problems may arise (and most likely will arise), or they will begin to counteract antitrust committees.

Among other things, virtual telecom operators have never become too popular - this is a niche service, with which a very limited number of users work.

In a sense, this work of Google can be compared with the corporation entering the market for selling gadgets - after all, the company has long been selling its own devices not only through resellers, but also independently. However, Google’s sales do not particularly affect reseller sales. Some activities, including the same sale of gadgets through Google Play, the corporation leads only because it needs to enter new markets, and considerable amounts of money allow it to do without problems.

In the long run, perhaps, Google will be a competitor to the traditional telecom operator, but, in fact, you can wait for it for a very long time.