Update: Apparently, it looks like it is a hoax, and not the reality – Here is a post explaining the same (It is a translated page, so English will be a bit wonky)
Looks like there is no stopping Google when it comes to entering a new segments while continuing to dominate the existing segments it operates in. It comes as no surprise than that Google had to defend its monopolistic stance with the US Senate.
Android marked Google’s entry into the telecom segment and the mind-numbing growth is for everyone to see. However, there have been suggestions that Google remains focused on search alone even with Android. Well, not so much after the acquisition of Motorola Mobility despite the general consensus that it was a patent play. If that wasn’t enough figure this recent move by Google,
Google has started making its own SIM card and has become an MVNO (Mobile Virtual Network Operator) in Spain
Now, an MVNO (Mobile Virtual Network Operator) does not own bandwidth and neither does it have its own network infrastructure like other telecom carriers. However, nothing stops a MVNO to roll out telecom services (both voice and data) by sharing the network bandwidth and infrastructure of an independent operator.
There are no clear indications as to what Google proposes to impact the phone experience by pushing its SIM along with its NEXUS S phone but there are possibilities that first call to action could be around the DATA. It could bundle in efficient data plans and entice users to opt for the buying the whole package (Google Phone and a Google SIM). Well, who is not being monopolistic here!!
I really don’t understand what Google’s play is in becoming an MVNO, if the only objective is to make NEXUS S sell more. I mean telecom carriers as it is are not having the most profitable times across the globe. Given that the MVNO model is not as capital intensive to set-up and Virgin was instrumental in leveraging the model in Europe, one wonders about the increasing role Google intends to play in influencing a user’s experience on a mobile phone.
What do you think Google is trying to achieve by becoming an MVNO. Will Google replicate the approach or strive to step up the telecom value chain in other regions as well?