THE BLOG

What a Google Wireless Plan Might Look Like

02/18/2015 11:00 am ET | Updated Apr 20, 2015

Recently, several outlets reported that Google is planning on launching a wireless carrier service and will start signing up customers this year. Most people don't like their carrier because of a combination of poor network quality and high bills. This is especially true for Verizon and AT&T customers, who tend to have the highest bills on average. Google might be about to change all that.

Google Wireless is going to be a reseller for both Sprint and T-Mobile, much as companies like Straight Talk and MetroPCS. One thing different about Google's approach is that they are reportedly offering phones which dynamically switch between networks, which mean that you'll get the coverage of both Sprint and T-Mobile combined, at the same time. Plus, you'll likely be able to make calls and texts via WiFi.

Many Android users are still running old versions due to the lengthy process of getting carriers to approve an update for every device type on the market. Owning their own service means Google could send updates to devices they sell on it much faster. We think Google will work with a partner to offer high-end hardware that gets updated rapidly on the service, so you can finally stop waiting months and years to get updates.

Its search engine benefits when you use *more *data, not less, so its unlikely they'll adopt current carrier practices here like throttling or overpriced data. We believe Google will offer 2GB data, voice, and text for around $20 per month. Perhaps they'll take it a step further and credit your account with your unused payment for data (I.e. they'll credit your account with $10 if you only use 1 GB data).

They're most likely seeking the same high end customers as Verizon and AT&T who want good network quality, which is why it's taking advantage of both Sprint and T-Mobile networks. When signing a 2-year contract from these carriers, the phones can range from free to $200. Carriers don't sign reseller agreements if it means they'll lose their core customers, so Google will need some way to avoid taking the low end of the market that Sprint and T-Mobile currently serve. Our guess is they'll do that by only selling Android devices from $250-$300.

Google Wireless is going to disrupt the high end of the market with better plans and data options, and use that to sell phones directly to consumers that run an Android experience that, for the first time, Google can update and control easily. A better Android experience means a better gateway for Google services. Google Wireless is adding up to be a huge play to directly sell a pure Android experience and service to customers. And they're doing it all on price and data terms that sound incredibly attractive. Watch out, Apple.