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Google: Mobile phones should be free
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At the Web 2.0 conference in New York, Google CEO Eric Schmidt told reporters that mobile phones should be free: "It just makes sense that subsidies should increase" as advertising rises on mobile phones. Schmidt admits phones may never become totally free for the consumer, at least not outside of Hong Kong, but advertising will drive down the costs substantially, as it did for newspapers.
Google recently introduced AdWords for its mobile search service through which it is currently experimenting with delivering text, brand-image and video ads to mobile phones. Deployments with carriers in Japan have already provided the company with some success on the mobile platform. As we have noted before, the recent acquisition of YouTube has mobile implications, too--particularly if you consider Google's prior acquisition of video search company Neven Vision.
For more on Google's mobile plans:
- see this article from MSN
Comments
Posted by jchesky | November 13, 2006 - 1:43pm
Free phones? No, but they should be a separate purchase. In the article titled: Google: Mobile phones should be free; the argument is made that carriers should give the phones away. Of course, why not we're rich, right? NOT. Carriers are now subsidizing the phone purchase, which actually leads to less selection for the customer and less flexibility fewer offerings for the customer. The sales model I would suggest is what is found in many countries. That is, you buy the phone from any number of competitive retailers and then have that phone activated into the network of the carrier of choice. When you leave that carrier, you take your phone with you.
Posted by Rick Simon | November 13, 2006 - 2:08pm
In this day and age of being bombarded with advertising in every fabric of your life could you stand to watch a 30 advertising spot before placing a call on your free cell phone? It may not start that way but try to access items on the web without advertising or why am I paying for cable when that is still providing advertising. Back in the day when over the air television was free the advertising was fine. But now I pay for it and get even more advertising.
By the way most handsets are free when you research and sign up for the right service.
Sincerely,
All Advertised Out
Posted by Karim Abiriga | November 14, 2006 - 5:24am
sure, ads will bring costs down. and one can imagine that there will be some free basic services, that will be financed through ads. However, newspaper show that people are willing to pay for quality content. a clever and transparent mobile billing system is no hassle for most of the users and it shows already today that they are more then willing to pay.
Sincerely,
TelcoPay.com - WAP Content Billing
Posted by Bill Atkins | November 14, 2006 - 10:58am
The last thing I want is to be bombarded on my cell phone with advertisements.... Its bad enough they generate noise and clutter on every web page.
Posted by bellhead | November 14, 2006 - 3:56pm
Google is a monopoly and should be broken up.
Its search engine infrastructure should be made available to any LSP (local search providers) who will share in GOOGs profit by directing search inquiries to the site.
Get busy.
Posted by Anonymous | March 16, 2007 - 2:08pm
Google is not a monopoly, it is a highly succesful business. It's not Google's fault that the competition can't compete. Local search providers sound like an awful idea. Why should Google have to share revenue with them?
Posted by TwoFingerPoi | March 16, 2007 - 2:55pm
If Google can muster a ad-supported model that provides free phones and service then I believe it will expand mobile communication for those that can't individually justify the current costs. Not a bad thing. Another choice, and more choice is a good thing. It will also apply pressure to incumbent carriers that are thriving is a state of marginal competition.
Posted by Elmar M. Gomez | March 16, 2007 - 7:36pm
A free Google phone that feeds to Google Base which in turn automatically indexes your phone messages to be searchable by you and if you allow it, by anybody. Imagine a wealth of information it maybe. Is Google turning out to be the Big Brother? In our part of the world that generates the largest consumption of SMS per person, this idea seem not farfetch.
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