A few months back, I teased the fact that Google was about to pull the trigger on their plan to become your cell phone provider— and they just did exactly that. They have just announced Google Fi, which is a cellular and WiFi network they say will be the new way to call.
Put simply, they have cut a deal with Sprint and T-Mobile (arguably the worst two networks out there) to piggyback on their cell coverage. It doesn’t end there. They are adding a network of strong WiFi hubs, which will give users Internet access over large areas and the ability to make phone calls over the WiFi rather than cellular service. That neat feature is currently limited to the Google Nexus 6 phone (a phone nobody has bought), but it points the way to the future.
It’s about time. When I visited South Korea about a decade ago, they already had strong and ubiquitous WiFi covering the entire country. Most people could make calls through either the cell service or the Internet connection. The new move by Google means that sometime soon, the average Google Fi user will be paying $50 a month for 3G service, WiFi hot spots and 3GB of data. That’s a considerable savings over what most of us are currently paying. Data you don’t use gets credited back to your account. Finally!
Though it’s still early, it’s likely that this will accelerate to work with all next-gen Android phones. Hopefully this new competitor with very large pockets and even larger ambitions will help stir the competitive pot in the same way that streaming technologies are helping to free us from the yoke of the cable company.
What’s missing is an Apple play in this space. iOS has already lost market leadership to Android. If Google starts bringing out really good smart phones that offer the kind of service we are talking about at these price points, it’s going to be tougher for Apple to stay relevant. Some kind of WiFi partnership with a major carrier (even a cable company) might make a lot of strategic sense, but I’ve heard no rumors to that effect yet.