Google moves into Cell Phones with the Android Nexus
By Rob Long, Real Star News
Google, the dominate internet-search engine, is extending its reach into mobile phones. Bloggers, partly humorously, call this move part of Google’s world domination plan, as Google has already made inroads into much of Microsoft’s territory, including browsers (Google chrome), data, Google Office and even plans for a- Google operating system to replace windows. The company is ready to formally unveil the “Nexus One,” a phone that has already been given to Google employees and was quickly tagged the“Google phone.” Google plans to sell the smart Android phone directly to consumers rather than through the traditional carrier partner.
Initially, this direct sales business model was considered a game changer, but more recently, critics have pointed out that other phone manufactures have been unsuccessful at selling unlocked phones in the U.S. However, it has been rare to find marketing miscalculations in Google’s seemingly unstoppable expansion. Google’s cellular marketing plan is common outside of the US. In Europe consumers often first select their phone and then choose the service provider. But that’s just not how things usually work in the US. Although unlocked phones of varying quality are widely available online for use on US networks, a Google Phone has the potential to make this much more common. What Google brings to the table is significant advertising power, credibility and a highly desirable phone.
Consumers could use the Nexus One phone on any service that uses GSM technology — that is, runs with a SIM (subscriber identity module) card. Instead of being locked into AT&T, for example, consumers could use their new Google phone to shop other carrier deals and take advantage of typically shorter or nonexistent contracts that companies offer when shoppers bring their own phone.
Providers like Virgin Mobile and Boost are offering unlimited calling and no-contract service plans for around $30 to $50 per month. T-Mobile also now offers a contract-less, no free phone deal with unlimited voice use for around $50. Three of T-mobiles plans offer $10 per month lower rates if you purchase your own phone.
The Nexus phone is being manufactured by HTC for Google, though it won’t be like other Android phones already on the market. Google was deeply involved with the design, making it a more of a “Google Phone” than to a third-party phone that runs Android
It’s not clear yet whether Google will offer multiple versions of the phone for different carriers. The initial Nexus phone will be designed for GSM, which is used by AT&T, T-Mobile and most of the rest of the world. CDMA is used in the US by Verizon and Sprint.
Verizon has already been talking about launching a CDMA-equipped iPhone if it can agree on pricing with Apple. While consumers would benefit from a choice of carriers, a CDMA iPhone still seems like a pipe dream. Verizon will also soon be getting Palm’s webOS phones. With the launch of Google Nexus One, Verizon may not be as interested as it once was in the iPhone.
Apple has launched the iPhone on multiple carriers in many parts of the world, and has noted success in countries where it is available from more than one carrier. However, when the iPhone first launched, Apple had to make a long-term exclusivity deal with AT&T just to get the phone to market. The original deal was for five years, though it is believed that that deal was renegotiated when the iPhone transitioned to a subsidized model for the iPhone. That renegotiated exclusivity is widely believed to expire this year.
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