Google’s unstoppable passion for product differentiation has made it plan again for a new joint venture. The tech expert is soon going to be a – mobile virtual network operator (MVNO). The company is rumoured to be providing mobile network connections to the consumers through which customers will be able to browse the web, make calls and send texts on their mobiles. To offer the new wireless network, Google is going to work in association with some of the 3G and 4G network providers currently operating in the U.S.
While it’s certainly a thrilling news for the customers, some already existing U.S. wireless companies might not take it as a friendly update. Everyone knows Google has always been highly successful in whatever it did. It seems like the company does an extensive research on project feasibility before it decides to expand its service. How Google is going to operate as far as providing a wireless mobile network is concerned?
Google isn’t going to build any special infrastructure for this. It’s simply going to connect to the service providers who already have the setup for such services in the U.S. Google will buy the access to such facilities and their service at a wholesale price and then resell it to the customers. This is what MVNOs do. As soon as Google finalize the company to join hands, it will make a public announcement regarding the new operation. What Google is going to get from this recent move is the profit from the resale price. In this case, the return will not be so high as Google will resale the service at a much lower price. But this would not hurt the company’s profit margin much as Google will not be having the initial establishment cost. It doesn’t have to invest in any infrastructure plan.
Google has already made a victory with Android. The company’s recent move in the Smartphone business has been another accomplishment. Now, with this new plan of helping customers have a great Smartphone experience at a lower price, Google can become a big threat to other Smartphone and mobile service operators.