A rumour earlier this week suggested that Google was looking to become a wireless carrier. Bloomberg now reports that Google has reached a deal with Sprint to do so. Operating as an MVNO (mobile virtual network operator) in the U.S., Google will purchase capacity from Sprint and resell it to its own customers.
Financial details of the deal were not provided but Google is said to be paying rates “similar to other mobile virtual network operators.” Masayoshi Son, the president of SoftBank Corp., which owns a majority share of Sprint, is said to have been “integral in facilitating the talks between Sprint and Google.”
While past rumours indicated that Google was also in discussions with T-Mobile, Bloomberg only provides details cited by prior reports.
Google could launch its service as soon as this year. The move would put it in direct competition with Sprint Wireless as well as other U.S. carriers, all of which offer smartphones powered by Google’s own Android operating system.
As users increasingly use their mobile devices for their online usage, the move to become an MVNO will allow Google to more quickly grow its mobile ad business in the face of declining PC ad sales.
Would you sign up to become a Google MVNO customer? Let us know below.
Source : Bloomberg