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Google Plans Wireless Networks In Emerging Markets
kgeiger writes "The next billion customers have to come from somewhere. The Wall Street Journal today reports that Google will fund, deploy, and manage wireless networks in sub-Saharan Africa and Southeast Asia. From the article: 'The Silicon Valley company is deep in the throes of a multipronged effort to fund, build and help run wireless networks in emerging markets such as sub-Saharan Africa and Southeast Asia, said people familiar with the strategy. The wireless networks would be available to dwellers outside of major cities where wired Internet connections aren't available and could be used to improve Internet speeds in urban centers, these people said.'"
It sounds from TFA like Google plans to make money off these customers more directly, through subscription fees for Internet service.
[Sir Garlon] is the marvellest knight that is now living, for he destroyeth many good knights, for he goeth invisible.
Depending on _how_ deep they go into these countries, I think the larger issue will be simply getting backhaul into these areas, and working through the bureaucracy to get it done.
Near as I can tell, some of these countries regulations are on the level of "I thought it up when you asked the question".
They might have more success with setting up in-nation intranets for instruction and governance purposes (the society change that comes with instant communications, without necessarily, the buybuybuy aspects, at least initially or exclusively).
Exactly my thought. The profit margins for Google are never going to be higher than they are right now -- the next billion people aren't going to be able to afford the $150 jeans Google is showing me ads for... and the billion after that are going to be even poorer. When you're wondering where your next meal is coming from, you probably aren't going to spend a lot of time on Google+.
The idea that Google is going to make money on subscription services is dubious. It's a business model (hello, AOL!) that doesn't work, even in markets that actually have money to spend on such things.
Am I part of the core demographic for Swedish Fish?
Virtually everyone in the US who wants access to the internet has it. Huge numbers of them use google.
Lots of people who want access to the internet access in Africa and the pacific rim and can't get it (I guess).
Why would google not engage in those markets?
Seems like this has more to do with getting more users and rolling out technology in places with little competition than anything else.
Benevolence implies a zero-sum game. Non-zero sum games are almost always more beneficial and sustainable.
Right on, Google.
My God, it's Full of Source!
OUTSIDE_IP=$(dig +short my.ip @outsideip.net)
The idea that Google is going to make money on subscription services is dubious.
By wireless I assume they mean Cellular.
Marketing Cellular to "sub-Saharan Africa" might work because The number of mobile phone users in sub-Saharan Africa rose by 44 per cent to 475 million, compared to just 12.3 million fixed line connections, representing the highest proportion of mobile versus fixed line connections in the world.
By comparison, there are only 326 million subscribers in the US.
(There is little street level wired infrastructure there, and cellular is the big player. (pdf). )
So cellular penetration is already bigger there than you might imagine, and apparently there is no problem affording handsets, and computers. So if there is enough money to buy equipment there is probably enough money to support advertising.
I would worry more about becoming targets for muslim extremists than failing to gain traction due to poor market conditions.
Sig Battery depleted. Reverting to safe mode.
When you're wondering where your next meal is coming from, you probably aren't going to spend a lot of time on Google+.
You are confusing cause and effect. Most of the third world is poor precisely because their people have little access to information. This facilitates corruption, and leads to price fixing and low productivity. Once poor people can blog about corrupt officials and law breaking garment factories, and Google for the wholesale price of corn in the closest big city, then they will not be so poor anymore. During the last decade, the spread of cell phones has done far more to alleviate poverty than all the billions spent on foreign aid. It is time for the next step up.