Google Inc may have decided to pull its much hyped Google Glass last week, but that doesn’t mean the tech giant is done innovating. It’s just going after the next big thing: your phone.
While the world starts to buzz about wearable tech, the new devices can’t seem to gain traction. Mobile phones are getting the job done for now and there might still be room for innovation. Google is positioning itself to lead that change.
Affordable Wireless
One big step for the company is a new plan to become a wireless service provider. Google and Cablevision Systems Corp are preparing to launch cellphone services that directly target Verizon Communications Inc (NYSE:VZ) and AT&T Inc by offering lower prices and higher quality.
Google’s service would combine cellular connections with a network of Wi-Fi hotspots. The cellular connection would come through Sprint Corp (NYSE:S) and T-Mobile US Inc (NYSE:TMUS), which have struck deals that allow the company to use those carriers’ networks. The new service would hunt through those networks and Google’s hotspots, instantaneously choosing the best available signal for calls, texts and data.
This would turn Google into a mobile virtual network operator, or MVNO, and a huge one at that. What’s more, the service could be up and running nationwide in the first half of this year, the Wall Street Journal reported Monday.
A cheap, effective service from Google would be bad news for Verizon and AT&T, which are already working overtime to lure new users and keep old customers with discounts on devices. Sprint and T-Mobile, however, could get a boost from extra revenue the Google agreement brings in, using it to upgrade their networks and improve call quality.
And with Cablevision aiming to offer a Wi-Fi-powered network nationwide, the competition is getting tougher. Cablevision plans to off its mobile service through Wi-Fi hotspots for $9.95 a month to its broadband customers and $29.95 a month to non-customers, a steep discount compared with the average mobile plan.
Smartphone Innovation
Google already has a strong foothold in the mobile-phone market with its Android operating system. But what it’s making next could shake up the entire industry.
The company’s Advanced Technology and Projects group is developing an open, modular smartphone, known as Project Ara. The phone allows you to remove and exchange blocks on the phone, enhancing your device with new abilities. The modular design lets you switch hardware like software apps, and the possibilities are quite exciting. See for yourself:
Twitter Whispers
With Google rolling out a new wireless service and starting a market pilot for an innovative phone in 2015, it looks like the Mountain View, California-based company is intent on redefining the mobile industry. What would make it even more enticing is if Google bought a company that defines the mobile era.
It may just be speculation, but Twitter Inc (NYSE:TWTR) shares rose 3.3 percent Thursday on reports that Google may move to acquire the microblogging platform. One analyst told CNBC the idea of such a move was “difficult but not impossible.”
As the world moves increasingly to mobile, Google needs a way bolster ad sales, which have slumped on personal computers and bring in less revenue on phones and tablets. Capitalizing on the broad new mobile market may just be its next step.
Google shares closed at $536.72 Monday, down 0.97 percent. The company currently holds a Zacks Rank #3 (Hold.)