Google is determined to be the dominant player in the mobile web, although it is keeping its options open on whether to achieve this by building its own networks (to support disruptive, internet-oriented providers) or by partnering with established carriers. In the US market, where it is making its first moves, it has perhaps found the perfect balance, in a tie-up with Sprint Nextel, which is equally dependent for growth on seizing a leading role in the emerging mobile web. The companies will co-develop a web portal for the carrier’s WiMAX network, which it is now building in conjunction with Clearwire, and these will support the free, open access, advertising-supported model that Google favors, but which the cellcos (including Sprint on its CDMA systems) have been hesitant to embrace.
The partnership not only brings Google’s credibility and market expertise to the Sprint efforts to morph into an internet player, but also demonstrates a mutual commitment to make the WiMAX network a genuine mobile internet system, rather than just a go-faster cellular network with the old walled garden, voice-centric business models. If Sprint can achieve that, through the device and software ecosystem it is currently constructing, then it could prove Google’s most valuable US partner, bringing none of the compromises inherent in delivering open internet services on the 3G networks, but also reducing the need to invest in spectrum and network build-out, in order to support a wholesale model in which Google has no skill or experience (see Wireless Watch July 23 2007 for the details on Google’s planned activities in 700MHz spectrum). Google, which has pledged to invest at least $4.6 billion in buying 22MHz of the 700MHz, if this is allowed to be fully open, would most likely support a variety of new operators on a wholesale and co-marketing basis in this band.
But the Sprint deal, potentially, gives it a readymade mobile broadband network that will have significant coverage before the 700MHz build-out can get going, and with a carrier partner experienced in important areas such as negotiating with device makers. Yet Google will have far greater influence over its partner than it does in conventional deals for mobile operators to offer its search engine and other services, and with Sprint already hinting that the deal will go well beyond the creation of the portal, we are likely to see the carrier and the internet giant becoming virtually equal partners in the development and implementation of what they promise will be the US’ first true mobile internet experience. For Google, this will be important for stealing the wireless search initiative back from Yahoo in the US, and kickstarting its own strategy to put mobility at the heart of its growth plan.
The portal, featuring a range of web services and supported by advertising revenue (to be shared between Google and the carrier) will debut in April 2008. Key initial elements will include location-aware search combined with Google unified communications tools such as email and chat, and with social networking. Sprint’s head of 4G, Barry West, said the company would not charge users for Google services, which will be supported by search-related advertising. “If you think of the internet you automatically think of Google,” he said. “Obviously having a powerful partner on the internet helps us become synonymous with the mobile internet.”
Sprint aims to create a highly differentiated environment for users of its WiMAX service, and is working with device makers such as Nokia, ZTE and Motorola on customized web-optimized products that go beyond just cellphones. It hints at a rich software platform that will support emerging user interface and web 2.0 technologies like widgets, and aim to take these a step further than similar initiatives on 3G. In this, Google could be a major supporter, since it has been carrying out its own advanced work on mobilizing modern web interfaces and applications ‘ something in which fellow Sprint ally Nokia is also very advanced. Sprint says that it will provide open standard APIs (application programming interfaces) to its market partners and the developer community to create customized products.
There is no indication as yet of whether Clearwire will also offer the Google services and even the Sprint portal, but in the wake of the two operators’ agreement to share the build-out of a national 2.5GHz network, they also said they would create a common brand with combined marketing and distribution, suggesting they will also pool resources on the mobile internet platforms and user interfaces.