Blog Insights: Will there be a gPhone? Should there be?

October 16, 2007, 10:21 AM —  ITworld.com — 

What bloggers are saying about the latest in information technology



Speculation among bloggers about the possibility of Google getting into the cell phone business has been rising lately. USA Today carried an article this morning about the gPhone project, which may or may not even exist-suggesting that Google is going to get into the ad-supported mobile phone business. There's no evidence that such is the case, but it does make an interesting proposition.

Richard Martin's InformationWeek blog says that Google won't be selling any gPhones, but speculates that the search giant is nonetheless devoting resources into designing such a device, not to release, but to influence the industry. And there's no doubt that Google has been quite active in trying to influence the wireless industry. The question is, why are they doing it?

Google isn't likely to want to get into the hardware business, but it would be practical from a business standpoint for them to create a handset just for the purpose of demonstrating how their many services could operate on another company's cell phone. This is a common business tactic-case in point, the sleek and stylish Bendix automobile, created in the '40s but never marketed (I saw it at the Studebaker Museum here in South Bend, Ind.), used only as a platform for testing and demonstrating Bendix auto parts to the public and the auto industry.

Rumors have been floating about a gPhone for months. Some say that they're planning to release a free phone that will be supported by ads -- an interesting concept, but one with limited market appeal. I have no doubt that Google wants to put ads on your cell phones, but I think they will take a much broader strategy-first by attempting to change the rules of engagement through lobbying and acquisition of spectrum, and then by promoting their services to cell phone users, who would download them for free, and then would see ads when they use Google services on their cell phones.

Gizmodo reports on another rumor that Google instead plans to convince handset manufacturers to place a "Google button" on existing phones, which would take users to a Google screen that would deliver free services, such as street maps, restaurant reviews, etc. Ars technica has a blog entry that weighs in on the subject as well, admitting that it's all speculation, but comes down in the end agreeing that the gPhone will be a reality.

Stephen Wellman at InformationWeek says that mobile is the future for Google. And while I wouldn't go so far as to say Google's future is entirely dependent on the mobile Internet, it will nonetheless greatly influence what Google does in relation to the wireless business.

Google may well put out a proof-of-concept device at some point, or may even co-brand a product, but Google would make far more money if they were able to influence the industry -- which they are attempting to do -- so that their services could run freely on any phone from any manufacturer. What they have planned is anybody's guess, because they're not talking.

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