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Google In Talks To Create International Roaming Network

jones_supa writes Google is in talks towards a deal with Hutchison Whampoa, the owner of the mobile operator Three, that will allow United States customers to use their phones abroad at no extra cost. The two giants are discussing a wholesale access agreement that would become an important part of Google's planned attempt to shake up the US mobile market with its own network. It is understood that Google aims to create a global network that will cost the same to use for calls, texts and data no matter where a customer is located. By linking up with Hutchison, it could gain wholesale access to mobile service in the UK, Ireland, Italy and several more countries where the Hong Kong conglomerate owns mobile networks.

25 comments

  1. Good! by Anonymous Coward · · Score: 2, Insightful

    I'm tired of paying $25/100Mb of data while I travel. Extortion.

    1. Re:Good! by Retron · · Score: 3, Informative

      Sounds like a bargain in comparison to UK provider charges. Although Three offers "Feel at Home" free roaming in some places, in places where it doesn't (eg Canada), you'll pay $896 per 100MB. And no, that isn't a typo!

      Calling a UK number. £1.40 per minute.
      Calling a Canadian number. £1.40 per minute.
      Texts to UK. 35p per text.
      Texting a Canadian number. 35p per text.
      Receiving calls from any number. 99p per minute.
      Receiving texts from any number. Free.
      Using internet and data. £6 per MB.
      Using voicemail. £1.40 per minute.

      http://www.three.co.uk/Support...

    2. Re:Good! by Anonymous Coward · · Score: 0

      That's insane!

    3. Re: Good! by Anonymous Coward · · Score: 1

      TMobile has had free worldwide roaming for a couple of years. Free data, free text. Doesn't change your country of origin so voice can be expensive.

      Still I don't see what is so earthshaking in this.

    4. Re:Good! by AntronArgaiv · · Score: 3, Informative

      I'm tired of paying $25/100Mb of data while I travel. Extortion.

      It's WAY past time for this to happen. For both voice and data. Telecom is hugely profitable, mobile telecom even more so. So profitable, in fact, that companies can succeed in spite of being totally inept.

    5. Re:Good! by alen · · Score: 1

      i'm simply going to dump my Note 3 for a new iphone this year and use offline map apps like Navigon so i don't have to rely on the cloud and all the resulting nonsense

    6. Re:Good! by hankwang · · Score: 3, Interesting

      Telecom is hugely profitable, mobile telecom even more so.

      Could you provide some data to support that statement? Not that I think the roaming charges are reasonable (since they are completely disconnected from actual costs for the operators), but that would just mean that domestic charges should go up and international/roaming rates should go down.

      Look for example at the Vodafone annual report (big PDF), income statement on page 96. On 38 bn UK pounds annual revenue, the made 5 bn loss (before taxes, not including the profitable sale of their stake in Verizon).

      Or the T-mobile US numbers on 2014 (full year). Page 6: US$ 14 bn revenue; net income US$ 0.25 bn. That does not look like a hugely profitable business to me. Or the balance sheet on page 5: US$ 57 bn assets, and only US$ 16 bn of stockholder's equity; a ratio of 3.6:1, which I'd consider pretty large for a company that is not making a large profit and that has to deal with rapidly depreciating infrastructure.

      Here's Verizon 2014 full year: US$ 127 bn revenue, US$ 12 bn net income. That looks more healthy. But look at the balance sheet: US$ 232 bn assets, and just US$ 14bn in equity (16:1 ratio). I would be very hesitant to invest in a company with such a balance sheet. To my surprise, the stock market thinks differently with a P/E of 21.

      I'm not a finance expert, so if I misinterpret the numbers, please correct me.

    7. Re:Good! by mspohr · · Score: 1

      T-Mobile offers a plan with unlimited free international data roaming.

      --
      I don't read your sig. Why are you reading mine?
    8. Re:Good! by schlachter · · Score: 1

      it's resolving some market inefficiencies. you can buy a new sim card and pay local rates which will be low...but it's a hassle and people don't want to have a different number. if google solves that inefficiency there will be some money to gain.

      --
      My God can beat up your God. Just kidding...don't take offense. I know there's no God.
    9. Re: Good! by Anonymous Coward · · Score: 0

      " 1GB full-speed plan includes 10MB roaming" - nothing is free at t-mobile.

    10. Re:Good! by Anonymous Coward · · Score: 0

      It is very far from true

  2. The reverse is already true... by Retron · · Score: 3, Informative

    Seems eminently sensible to me.

    Here in the UK Three already allows you to use your contracted minutes and data allowance in some countries, including in the USA, at no extra cost.

    http://blog.three.co.uk/2013/1...

    I'll be making heavy use of it in a couple of months when I'm heading to Seattle (and Alaska), it'll be far more convenient than buying a local SIM as I did last time I was in the USA.

    I'm quite surprised that there aren't already similar agreements for people from the States visiting Europe.

    1. Re:The reverse is already true... by radarskiy · · Score: 1

      I'd probably be better off buying some property in the UK to establish a mailing address to get that service to use exclusively in the USA than keeping my current AT&T plan.

  3. Hutchison has been offering this for a while by fisf · · Score: 2

    See http://en.wikipedia.org/wiki/H... This has been available from national providers that are part of Hutchison for a while (covering parts of the EU, etc.). Depending on your precise conditions the US are included as well (partners being AT&T or T-Mobile). So considering the big picture this is not really big news. Unfortunately *my* local provider canceled the service for new customers which is basically the reason why I am never going to switch to one of their new packages.

    1. Re:Hutchison has been offering this for a while by Registered+Coward+v2 · · Score: 1

      It appears from the link calls and text to the UK are free, as is data usage. Are calls to numbers within the country you are roaming include in the no roaming cost deal as well?

      --
      I'm a consultant - I convert gibberish into cash-flow.
    2. Re:Hutchison has been offering this for a while by fisf · · Score: 1

      No. Background / summary: Based on the package that I have, national calls, texts and data traffic is free -- up to some high number that I never reach. What this deal allows, is to consume parts of your package abroad without additional cost. It does however not change your "country of origin" so to say. So I can make callsto / text some at home and use data for free. Newer contracts allow precisly this (= completely free calls/texts within all EU three networks) but do so at an additional cost. Data is usually not included. Since roaming for calls and texts (within the EU) is dirt cheap nowadays anyway, this is not an attractive option :)

  4. Irony... by Anonymous Coward · · Score: 1

    The irony here is that in certain circles in the USA this will be perceived as "disruption" and a David-vs.-Goliath "free market" victory. In reality, what makes this possible, in part, is the EU's strict regulation on roaming fees. Hutchison will be able to provide cheap bandwidth not because of the free market, but despite it: because EU regulators have reined in the "free market" that has screwed customers for decades.

    (I'm aware that the EU is by far not the only market outside the US, but it's a big, important, and previously quite fragmented one.)

  5. if three had mentioned this in hong kong by 0xdeaddead · · Score: 1

    id had signed with them. Instead more pccw :(

  6. Good by koan · · Score: 1

    I want to watch Verizon and ATT collapse.

    --
    "If any question why we died, Tell them because our fathers lied."
  7. att data higher also fringe roaming can hit the sa by Anonymous Coward · · Score: 0

    att data higher also fringe roaming can hit the same fees.

    Try $15-$20 a meg.

  8. This ship sailed for me already by Anonymous Coward · · Score: 0

    AT&T fucked me one too many times, so now I only buy unlocked phones outright. That way when I travel, I can just buy a local SIM card, stick it in my phone, and be on my way.

    Paying $20 per month ON TOP of a data package for texting is insult enough, but with international data packages they are just taking the piss.

    I'm wary of Google doing this, because internet access from Google means that they will likely slurp up all of your data and browsing habits. But I support anything to displace AT&T and Verizon.

  9. Richard Valentine... by Anonymous Coward · · Score: 0

    is truly a great man.

  10. T-mobile by chris200x9 · · Score: 1

    already has this for the most part, you get free unlimited text and data in over a hundred countries and with VOIP services these days you can easily call over data.

  11. Tag of relevance by Anonymous Coward · · Score: 0

    As the old /. tag says, goodluckwiththat

  12. Australia? by ChunderDownunder · · Score: 1

    Three used to be a mobile carrier brand here, but Hutchinson and Vodafone now jointly run a network under the 'Vodaphone' name.

    Vodafone runs a distant 3rd in terms of subscribers compared to the Telstra and Optus networks but might pick up a few thousand new users if the global roaming outside Australia was compelling.