Google push wireless service fi facing network coverage problems

Google announced the launch of its virtual operator service in Wednesday, the morning of April 23 in Beijing. With a low price and a flexible data plan, Google's service will put pressure on Verizon and T. But it will take years for Google to pose a real threat to the big US carriers.

Google virtual operator service named Project Fi, starting at $20 per month, in addition to a 1GB data traffic price of $10. Google's partner for this service is sprint and T-mobile. However, the service is also flawed: users must own or buy a Nexus 6, and the service may not be stable outside of large cities.

Earlier, operators such as Sprint and T-mobile have forced both T and Verizon to lower service prices. Moreover, the popularity of WiFi networks has brought cheap competitors such as Republic Wireless, Scratch Wireless and FreedomPop, causing price pressures for large operators. Google's new service also brings potentially disruptive elements, namely that smartphones can switch between Sprint and T-mobile networks, and users are free to choose networks with better signals.

John Hodulik, an analyst at UBS, says that while this price is attractive to individual users, it may not be the case for home users, John Khodurik. Home users account for 2/3 of the number of post-paid users. Project Fi's family package is priced at $180, including 4-way phones and a $100 10GB data plan. In contrast, the sprint is priced at $80 and t-mobile at $100, while Verizon and T are priced at $160.

"Project Fi is not expected to have much impact in the short term, but the outlook is unclear in the long run," Khodurik said in the report. ”

As a virtual operator, Google will provide t-mobile and sprint services under restricted circumstances. Recon Analytics LLC analyst Roger Entena (Roger Entner) said: "This is not an economically significant threat because Sprint has limited it." ”

In addition, it is not certain whether Google will be long-term focus on the business. It is widely believed that Google testing the virtual operator more than just a try. "The long-term threat may not be great, because outside of the core network advertising business," said John Butler John Butler, a Bloomberg Intelligence analyst and Matthew Kantman, in a report today: Google has never realized a meaningful diversification. ”

One of Google's innovations is that users can switch freely between sprint, T-mobile's mobile network, and WiFi network based on network coverage in a given region. Evercore analyst Jonasan Skilkraut Jonathan Schildkraut said Google may also work with cable companies to use the latter's WiFi network to provide services to users.

Stephen Stokols, CEO of FreedomPop, another virtual operator, said the company also wanted to provide users with the ability to switch between different carrier networks, whether in the US or abroad. The company is discussing the issue with the operators.

Chetan Salma, Chetan Sharma, an independent mobile communications analyst, says that if more devices support switching between different carrier networks, operators will be more aggressive in competing for users across geographies. "The operators that win the competition will get the business. This can be disruptive. ”

Google push wireless service fi facing network coverage problems