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Google Attack On the Mobile Market Rumored

xchg writes in with a somewhat speculative, though plausible, piece from WiseAndroid claiming that Google is gearing up for an all-out assault on the mobile-phone market that will include a new, Google-branded handset and the first comprehensive Google phone service with unlimited free calls. "The real breakthrough, however, will come with the marriage of the Googlephone to Google Voice, the Californian company’s high-tech phone service. Google Voice gives US users a free phone number and allows unlimited free calls to any phone in the country — landline or mobile. International calls start from... just over a penny a minute. Google Voice also uses sophisticated voice recognition to turn voicemails into emails, can block telemarketing calls automatically and offers free text messaging. Google sounded its intentions two weeks ago when it purchased a small company called Gizmo5... [E]xperts are predicting that the Googlephone will be launched in the US early next year."

25 of 324 comments (clear)

  1. Creative destruction by mruizcamauer · · Score: 4, Insightful

    ... of a large industry, telecoms... but that is progress!

    1. Re:Creative destruction by sakdoctor · · Score: 4, Insightful

      I hate mobile phones and everything about the industry behind them.
      This sounds quite a bit less hate-able.

    2. Re:Creative destruction by StreetStealth · · Score: 4, Informative

      Ever since the introduction of 2G mobile technology, we've just been throwing data back and forth between the towers, and yet even in 2009 the telcos still charge us differently for minutes, text messages, and "data."

      It was always going to take a disruptive force to get them to recognize data as data and price it as such. Maybe Google will serve as just that disruption.

      --
      Your mind is clear / The things that you fear / Will fade with how much you / Believe what you hear
    3. Re:Creative destruction by Philip+K+Dickhead · · Score: 3, Insightful

      What industry abuses their customers, dangles features and incentives of questionable value in a quid pro quo for contractual lock-in and then produces unilateral unpredictable billing and surcharges to this captive market? No. You are right! That describes Credit Card companies, the only business hated more by their customer base than the mobile phone providers.

      They share in common, contempt for the flock they shear.

      Google will succeed because of the venality and arrogance of the incumbent carriers. That's why they chose this market. Google will be a company people like, despite the creeping monopoly of their personal information and continuing erosion of their privacy.

      --
      "Speaking the Truth in times of universal deceit is a revolutionary act." -- George Orwell
    4. Re:Creative destruction by Shakrai · · Score: 4, Insightful

      What industry abuses their customers, dangles features and incentives of questionable value in a quid pro quo for contractual lock-in and then produces unilateral unpredictable billing and surcharges to this captive market? No. You are right! That describes Credit Card companies, the only business hated more by their customer base than the mobile phone providers.

      What credit card company uses 'contractual lock-in'? I've never seen a credit card that you couldn't cancel at any time.

      --
      I want peace on earth and goodwill toward man.
      We are the United States Government! We don't do that sort of thing.
    5. Re:Creative destruction by MBCook · · Score: 5, Insightful

      Wait... you mean to get out of a loan with a bank (basically what a credit card is)... I have to pay it off?!?

      Dear god, they're screwing us!

      --
      Comment forecast: Bits of genius surrounded by a sea of mediocrity.
    6. Re:Creative destruction by MBCook · · Score: 4, Informative

      That's not true. At any point you can go to the credit card company and say "Here is the $3874 I owe you" and get out of your contract.

      The terms are only unilaterally adjusted if you pay it off monthly. In that case, you're still in the loan, so of course your contract holds. They can't ignore the contract. You signify agreement to any changes by not canceling your account. If you've been using your credit responsibly, that shouldn't be too much of a problem. If you've been using it like a second source of income, yeah, you're screwed.

      I do think many of the credit card company's practices are horrible, and some should be illegal. In fact, some are now (read: June 1st) thanks to the credit card reform that was passed. But it annoys me that so many people take on so much debt and then complain that they have to pay it off.

      I don't see enough people taking responsibility, so I poked at your point that read that way to me.

      --
      Comment forecast: Bits of genius surrounded by a sea of mediocrity.
    7. Re:Creative destruction by MBCook · · Score: 4, Insightful

      They don't get to add $500 "you paid off your card" fees. What amount are you talking about?

      The high interest rates? You agreed to them in the contract. It was a one sided contract, but you agreed. You can pay off your loan at any time and get out of it.

      Should credit cards be able to lend people $25k at 28% interest? Almost certainly not. Does that mean it's OK to take that money and then claim "it was unfair, I demand 7%"? No.

      --
      Comment forecast: Bits of genius surrounded by a sea of mediocrity.
    8. Re:Creative destruction by Myopic · · Score: 4, Interesting

      Goodness, I hope Google offers a phone.

      Today I went to an AT&T store (I'm an AT&T customer) trying to buy a phone, as I've been doing for literally years. I'm a computer programmer, a big nerd, and I still have a crappy candybar phone from 2002. I really want some kind of super smart phone, but no company is apparently willing to sell me one! To me, my constraints all seem reasonable:

      • The phone must charge and sync data over a standard USB or mini-USB cable, with no proprietary chargers or data cables.
      • The phone's software must be under my control, so I can install a new operating system if I want, or whatever else I want. It must be a fully open hardware platform, the same way I can install new software on my computer.
      • The phone must use standard SIM cards so I can easily switch telephone providers, or travel internationally with pay-as-you-go SIM cards.
      • The phone must have Bluetooth which can be used for earbuds and for data syncing.
      • If it's a smart phone, it must be able to show real full webpages, not just mobile versions of webpages.

      Really, are those such unreasonable requests? I'm just not willing to pay money to companies that make me endure shenanigans such as:

      • Phones that only work on one carrier. (WTF?)
      • Phones that require a $50 cable to sync data or to charge the battery. (WTF?)
      • Phones that have Bluetooth but it can't be used to sync data, only to communicate with proprietary peripherals. (WTF?)
      • Phones that hold information for the people I contact, but provide no way to get that info off the phone. (WTF?)

      So the first company that offers me a smart phone with zero shenanigans is going to get my money. I'm desperate for a new phone, and I'm going to buy the first one that is above the threshold of acceptability! My phone is an embarrassment, and I'm a perfect candidate for an expensive new phone, and I'm really surprised that there is no company that wants my money.

    9. Re:Creative destruction by Shakrai · · Score: 4, Interesting

      It's more to do with the "pay off not only more than you owe, but also enough to pay for huge CC company profits

      The nerve of those for-profit companies turning a profit.

      Hey, I got an idea for you if the notion of a credit card company turning a profit bothers you so much: Get a credit card from a credit union. Most Americans are eligible to join one or more credit unions. Why we need to legislate "reform" on the credit card industry when the marketplace has already provided alternatives is beyond me. Maybe if people would spend some time doing basic research on the options available to them we'd all be better off?

      --
      I want peace on earth and goodwill toward man.
      We are the United States Government! We don't do that sort of thing.
    10. Re:Creative destruction by Flavio · · Score: 4, Insightful

      Here's the deal: be realistic. No company's going to offer you a "fully open" cell phone simply because there aren't any fully open operating systems for smart phones out there, and rushing something similar to the market would end up in a support nightmare. Nokia's come a long way with Maemo running on the N900, but the user impressions I've read wrt to the N900 make it clear that the software is beta at best, and is lacking features one would consider standard in a smartphone.

      Here's my unsolicited advice: buy an unlocked GSM phone from overseas. My GSM Nokia 5800 can sync over USB or bluetooth, connect me to the Internet over bluetooth using Nokia's Ovi Suite (for Windows) and comes with all the cables you'll need, including the car charger. It's a very affordable smartphone, has great GPS functionality which doesn't require an internet connection to download maps, can play high resolution videos, has a real (albeit kind of slow) web browser and is made by Nokia, which is the most OSS-friendly cell phone manufacturer out there.

    11. Re:Creative destruction by Cwix · · Score: 3, Funny

      Only if it comes with the hot, half naked chick, with a whip.

      --
      You are entitled to your own opinions, not your own facts.
    12. Re:Creative destruction by yumyum · · Score: 4, Informative

      Citation? Otherwise, I think you are "making this up".

    13. Re:Creative destruction by MBCook · · Score: 3, Insightful

      You're credit score changing doesn't prevent you from leaving the contract. It doesn't force you to keep paying interest.

      Also, it's entirely possible to not care about your credit score. It only matters if you want to take on debt all the time.

      --
      Comment forecast: Bits of genius surrounded by a sea of mediocrity.
    14. Re:Creative destruction by symbolset · · Score: 5, Interesting

      People with half a brain are realizing Google is becoming the greatest corporate evil ever.

      Um, until I actually see google doing something evil, I'm going to have to not believe you here. AT&T isn't exactly the corporate version of Rainbow Brite. Their evil is less theoretical and more actual. Google can do this to the phone companies because they're outrageously overcharging for their products. They pretend to be competing but it's obvious that what's happening is not a free market dynamic.

      Like the market for software, cellular services is a space where the cost of the invention is fully paid back several times over and the incumbent providers are engaging in rent-seeking behavior. All Google has to do to threaten that model is not participate in it, and instead offer a value and quality proposition. Maybe after Google rationalizes the cellular networks they will get into content distribution or Pharma. That would be nice. There's no lack of rent-seeking industries for Google to assimilate so this could go on for quite a long time.

      --
      Help stamp out iliturcy.
    15. Re:Creative destruction by BountyX · · Score: 3, Insightful

      I don't think Google's market power should be considered destroying industry. They are basically taking from businesses who shouldn't spend so much on advertising and marketing in the first place and giving back to the people with free services. We are talking about reinvesting profits into new markets and challenging incumbent cartels. This is how capitalism should work, markets get constantly redefined by cheaper and better services. Google is not becoming a "corporate evil", this is a confounding statement at best. The reality is Google is the only company willing to challenge and compete with the cartels. That is where the trouble begins. We need to have more companies like Google competing even over free services. Google as a company IS not to blame, the fact that Google is the only one doing these sort of things is the unfortunate issue. I think you will agree that if we as consumers had more options and honest competition, Google probably wouldn't have so much market share.

      --
      Trying to install linux on my microwave, but keep getting a kernel panic...
    16. Re:Creative destruction by Shakrai · · Score: 4, Insightful

      Did you know that when you do that, the credit card company reports it as negative credit information that lowers your credit score?

      -1, factually incorrect. They do no such thing. Reporting 'negative' information that isn't true would be a violation of the fair credit reporting act. Paying off your credit card will not lower your score. It can only raise your score, as one of the key factors of your credit score is the amount of debt you owe vs. your total credit limits. Ideally this value should be less than 15%, though it doesn't really start to hurt you until you exceed 40%.

      Closing an account may hurt your score, as the score model prefers older accounts to newer ones. But that really doesn't have anything to do with paying off your debt. If you pay off your debt and keep the account open your score can only go up. Whether or not it goes down if you close the account depends on a number of different factors -- how much debt you owe on your other accounts, how old they are, how old the closed one was, etc.

      In any case, the credit scores weren't designed by the credit card companies. They were designed by the credit reporting agencies and a company called Fair Issac. None of them happen to be in the credit card business.

      A "deadbeat".

      Who cares what they call you? I pay off all my accounts in full, every month. I don't care if they think I'm a deadbeat. I'm still getting an interest free loan for 25 to 60 days. I'm also getting liquidity -- I can make a purchase without regard to when my next paycheck happens to be.

      The credit card companies are at the top of the list of commercial entities that are openly hostile to their customers

      You are painting with a really broad brush there. I had a WaMu account for five years until they went out of business. They were one of the nicest companies I've ever done business with. My credit union offers credit cards with a fixed 7.9% APR and a single page account agreement that doesn't require a law degree to decipher.

      As with any business, there are good actors and there are not-so-good actors. It's up to you to give your business to the ones that treat you decently. I have no sympathy for someone who is doing business with a "hostile" credit card company when there are so many alternatives that are only a phone call away. You might find this hard to believe but Citi, Chase and Capital One don't have a monopoly on the credit card market. There are alternatives.

      --
      I want peace on earth and goodwill toward man.
      We are the United States Government! We don't do that sort of thing.
  2. The carriers will attempt to unite and squash this by BuckaBooBob · · Score: 5, Interesting

    This will be very interesting to see how this will work out as every Cell Phone Carrier will do what ever they can to Quash this as its attacks their revenue streams.

    This should prove to be an interesting battle as google has the funding to fight tooth and nail to ensure the cell carriers don't lock them out.

    --
    Who needs WiFi when we can have Packet Over Sheep! http://datacomm.org/PoS-InternetDraft.txt
  3. "High-tech phone service?" Maybe if it worked... by NeuralClone · · Score: 4, Interesting

    This is all very interesting but Google Voice barely functions when calling internationally. And I've had horrible luck with it domestically too.

    I've been trying to use this service for a while now and it consistently connects me to random numbers in the country I'm calling (yes, I'm dialing the right number and I'm dialing correctly). When I actually do connect to some random person, they can't hear me 4 out of 5 times (and that's being generous).

    When calling domestically, I get connected to who I'm calling, but 50% of the time one of us can't hear the other. Very irritating.

    So, until they can actually guarantee that their service, you know, WORKS, this isn't something I'm remotely interested in. Google Voice isn't even close to ready for anything beyond a fun little service to play with.

    --
    find . -name "noobs" -print | xargs rm -rf && echo "pwnd."
  4. Re:Google Is the New Borg by WindBourne · · Score: 5, Insightful

    How are they monopolists of information? In fact, have you seen them ILLEGALLY enforce their natural monopoly? Have you seen them do illegal actions to take over markets? If so, please provide the proof of that. Otherwise, Cayate la boca, chica.

    --
    I prefer the "u" in honour as it seems to be missing these days.
  5. Adapt or else by gmuslera · · Score: 5, Insightful

    Remember when web mail providers were giving like 4Mb of mailbox capacity, and then Google came with 2Gb (oh, yes, and a spam filter that actually worked)? Most providers didnt vanished, just had to adapt and still are here, giving a better service to their costumer. For cellphone industry that is something very needed, someone that come with a disruptive idea and weight enough behind to actually push it. Wont kill all companies, but to survive they will have to improve, not just giving the latest gizmo and charging you a lot.

    1. Re:Adapt or else by Anonymous Coward · · Score: 4, Informative
  6. Where is the network? by zogger · · Score: 5, Interesting

    At first I thought, whoa, the google phone company, then I broke down and RTFA....You still need a "plan" of some sort from a carrier unless you are using this google phone at some free leeched wifi spot or at home on your network. If you are at home..no need for a special phone, just use your headset and the software like you are now.

    If this takes off and people drop voice and go to data only plans, the carriers will just restrict the heck out of them, maybe even dropping the caps from five gigs to one gig, then a hundred bucks a gig after that, whatever they say, or stop offering data only plans, etc. In other words, they aren't going to get "cut out", you will still be horking over ca$h to attverizonsprint whatever.

    I am digging on much better quality phones though..eventually I think the mobile phone will more or less be your computer, and at home you'll just have a wireless connected screen and keyboard and mouse, etc with some NAS action.

  7. The article may say something incorrect by Myopic · · Score: 5, Insightful

    The article says

    For the first time, a single company will control everything from the software in users’ phones to the services they use to make calls and surf the web.

    But wait, every phone I've ever had the hardware, software, and services were controlled 100% by my phone carrier. So in that way, the Google phone would be the same.

    To me, the difference is that I trust the hardware, software, and services from Google, but I don't for a second trust AT&T, Sprint, or Verizon. They have proven that they refuse to provide products and services that I want, but Google has proven that they very much understand and want to provide the products and services that I want. I share the privacy concerns about Google, but at this point I'm just being vigilant, watching for Google to violate my trust. So far so good.

    Google! Please put the dinosaurs out of business! I want to stop giving them my money! I want to give you my money for better services!

  8. Two words, "whose network?" by Jawn98685 · · Score: 3, Insightful

    RTFA, folks. Google is far, far from posing a threat to the wireless carriers. VOIP over Wi-Fi is one thing, but VOIP over 3G wireless (or whatever) is something else entirely, something that the actual carriers have the means, and certainly the motivation, to fuck with at will (as we have already seen). Unless/until Google starts putting up their own towers, there is nothing new here, at least nothing revolutionary or "game changing".